Correlation Between Huntington Bancshares and Five Star
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Five Star at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Huntington Bancshares and Five Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Bancshares Incorporated and Five Star Bancorp, you can compare the effects of market volatilities on Huntington Bancshares and Five Star and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Huntington Bancshares with a short position of Five Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Five Star.
Diversification Opportunities for Huntington Bancshares and Five Star
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huntington and Five is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Five Star Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Star Bancorp and Huntington Bancshares is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Huntington Bancshares Incorporated are associated (or correlated) with Five Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Star Bancorp has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Five Star go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Five Star
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 0.86 times more return on investment than Five Star. However, Huntington Bancshares Incorporated is 1.16 times less risky than Five Star. It trades about 0.12 of its potential returns per unit of risk. Five Star Bancorp is currently generating about 0.08 per unit of risk. If you would invest 1,124 in Huntington Bancshares Incorporated on August 29, 2024 and sell it today you would earn a total of 690.00 from holding Huntington Bancshares Incorporated or generate 61.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Five Star Bancorp
Performance |
| Timeline |
| Huntington Bancshares |
| Five Star Bancorp |
Huntington Bancshares and Five Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Five Star
The main advantage of trading using opposite Huntington Bancshares and Five Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Five Star can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Five Star will offset losses from the drop in Five Star's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| Five Star vs. Fifth Third Bancorp | Five Star vs. Huntington Bancshares Incorporated | Five Star vs. MT Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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