Correlation Between Huntington Bancshares and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Wintrust 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 Wintrust 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 Wintrust Financial, you can compare the effects of market volatilities on Huntington Bancshares and Wintrust 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 Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Wintrust Financial.
Diversification Opportunities for Huntington Bancshares and Wintrust Financial
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Huntington and Wintrust is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Wintrust Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust 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 Wintrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintrust Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Wintrust Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Wintrust Financial
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 0.95 times more return on investment than Wintrust Financial. However, Huntington Bancshares Incorporated is 1.05 times less risky than Wintrust Financial. It trades about 0.12 of its potential returns per unit of risk. Wintrust Financial is currently generating about 0.1 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. Wintrust Financial
Performance |
| Timeline |
| Huntington Bancshares |
| Wintrust Financial |
Huntington Bancshares and Wintrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Wintrust Financial
The main advantage of trading using opposite Huntington Bancshares and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Wintrust 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 Wintrust Financial will offset losses from the drop in Wintrust Financial's long position.| Huntington Bancshares vs. Home Federal Bancorp | Huntington Bancshares vs. First Northwest Bancorp | Huntington Bancshares vs. First Financial Northwest | Huntington Bancshares vs. CF Bankshares |
| Wintrust Financial vs. Home Federal Bancorp | Wintrust Financial vs. First Northwest Bancorp | Wintrust Financial vs. First Financial Northwest | Wintrust Financial vs. CF Bankshares |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |