Correlation Between Huntington Bancshares and National Beverage
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and National Beverage 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 National Beverage 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 National Beverage Corp, you can compare the effects of market volatilities on Huntington Bancshares and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and National Beverage.
Diversification Opportunities for Huntington Bancshares and National Beverage
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huntington and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and National Beverage go up and down completely randomly.
Pair Corralation between Huntington Bancshares and National Beverage
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to under-perform the National Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Huntington Bancshares Incorporated is 2.77 times less risky than National Beverage. The stock trades about 0.0 of its potential returns per unit of risk. The National Beverage Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,568 in National Beverage Corp on August 29, 2024 and sell it today you would earn a total of 319.00 from holding National Beverage Corp or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. National Beverage Corp
Performance |
| Timeline |
| Huntington Bancshares |
| National Beverage Corp |
Huntington Bancshares and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and National Beverage
The main advantage of trading using opposite Huntington Bancshares and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Huntington Bancshares vs. National Beverage Corp | Huntington Bancshares vs. Magnite | Huntington Bancshares vs. BBB Foods | Huntington Bancshares vs. Cimpress NV |
| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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