Correlation Between Huntington Bancshares and Triumph Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Triumph Financial 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 Triumph Financial 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 Triumph Financial, you can compare the effects of market volatilities on Huntington Bancshares and Triumph Financial 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 Triumph Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Triumph Financial.
Diversification Opportunities for Huntington Bancshares and Triumph Financial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huntington and Triumph is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Triumph Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Financial 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 Triumph Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Triumph Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Triumph Financial
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 1.98 times more return on investment than Triumph Financial. However, Huntington Bancshares is 1.98 times more volatile than Triumph Financial. It trades about 0.13 of its potential returns per unit of risk. Triumph Financial is currently generating about 0.1 per unit of risk. If you would invest 1,335 in Huntington Bancshares Incorporated on August 25, 2024 and sell it today you would earn a total of 454.00 from holding Huntington Bancshares Incorporated or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Triumph Financial
Performance |
| Timeline |
| Huntington Bancshares |
| Triumph Financial |
Huntington Bancshares and Triumph Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Triumph Financial
The main advantage of trading using opposite Huntington Bancshares and Triumph Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Triumph Financial 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 Triumph Financial will offset losses from the drop in Triumph Financial's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| Triumph Financial vs. Fifth Third Bancorp | Triumph Financial vs. Zions Bancorporation | Triumph Financial vs. Huntington Bancshares Incorporated | Triumph Financial vs. PNC Financial Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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