Correlation Between Huntington Bancshares and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Fulton 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 Fulton 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 Fulton Financial, you can compare the effects of market volatilities on Huntington Bancshares and Fulton 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 Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Fulton Financial.
Diversification Opportunities for Huntington Bancshares and Fulton Financial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Huntington and Fulton is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton 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 Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Fulton Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Fulton Financial
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.5 times more return on investment than Fulton Financial. However, Huntington Bancshares is 1.5 times more volatile than Fulton Financial. It trades about 0.19 of its potential returns per unit of risk. Fulton Financial is currently generating about -0.13 per unit of risk. If you would invest 1,737 in Huntington Bancshares Incorporated on October 26, 2024 and sell it today you would earn a total of 98.00 from holding Huntington Bancshares Incorporated or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Fulton Financial
Performance |
| Timeline |
| Huntington Bancshares |
| Fulton Financial |
Huntington Bancshares and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Fulton Financial
The main advantage of trading using opposite Huntington Bancshares and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Fulton 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Huntington Bancshares Incorporated | Huntington Bancshares vs. Washington Federal | Huntington Bancshares vs. Fifth Third Bancorp |
| Fulton Financial vs. First Citizens BancShares | Fulton Financial vs. Fifth Third Bancorp | Fulton Financial vs. Dime Community Bancshares | Fulton Financial vs. Heartland Financial USA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance |