Correlation Between Huntington Bancshares and Japan Post
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Japan Post 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 Japan Post 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 Japan Post Holdings, you can compare the effects of market volatilities on Huntington Bancshares and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Japan Post.
Diversification Opportunities for Huntington Bancshares and Japan Post
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huntington and Japan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Japan Post Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Holdings 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Holdings has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Japan Post go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Japan Post
If you would invest 1,554 in Huntington Bancshares Incorporated on August 24, 2024 and sell it today you would earn a total of 208.00 from holding Huntington Bancshares Incorporated or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Japan Post Holdings
Performance |
| Timeline |
| Huntington Bancshares |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Huntington Bancshares and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Japan Post
The main advantage of trading using opposite Huntington Bancshares and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| Japan Post vs. Huntington Bancshares Incorporated | Japan Post vs. Fifth Third Bancorp | Japan Post vs. MT Bank | Japan Post vs. Citizens Financial Group, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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