Correlation Between Huntington Bancshares and First National
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and First National 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 First National 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 First National Corp, you can compare the effects of market volatilities on Huntington Bancshares and First National 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 First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and First National.
Diversification Opportunities for Huntington Bancshares and First National
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huntington and First is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and First National Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Corp 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Corp has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and First National go up and down completely randomly.
Pair Corralation between Huntington Bancshares and First National
Given the investment horizon of 90 days Huntington Bancshares is expected to generate 1.14 times less return on investment than First National. In addition to that, Huntington Bancshares is 1.31 times more volatile than First National Corp. It trades about 0.04 of its total potential returns per unit of risk. First National Corp is currently generating about 0.06 per unit of volatility. If you would invest 1,640 in First National Corp on August 31, 2024 and sell it today you would earn a total of 842.00 from holding First National Corp or generate 51.34% 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. First National Corp
Performance |
| Timeline |
| Huntington Bancshares |
| First National Corp |
Huntington Bancshares and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and First National
The main advantage of trading using opposite Huntington Bancshares and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| First National vs. Home Federal Bancorp | First National vs. Lake Shore Bancorp | First National vs. Oak Valley Bancorp | First National vs. Community West Bancshares |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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