Correlation Between Huntington Bancshares and Truist Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Truist 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 Truist 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 Truist Financial, you can compare the effects of market volatilities on Huntington Bancshares and Truist 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 Truist Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Truist Financial.
Diversification Opportunities for Huntington Bancshares and Truist Financial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huntington and Truist is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Truist Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truist 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 Truist Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truist Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Truist Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Truist Financial
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to under-perform the Truist Financial. But the preferred stock apears to be less risky and, when comparing its historical volatility, Huntington Bancshares Incorporated is 1.1 times less risky than Truist Financial. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Truist Financial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Truist Financial on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Truist Financial or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Truist Financial
Performance |
| Timeline |
| Huntington Bancshares |
| Truist Financial |
Huntington Bancshares and Truist Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Truist Financial
The main advantage of trading using opposite Huntington Bancshares and Truist Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Truist 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 Truist Financial will offset losses from the drop in Truist 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 |
| Truist Financial vs. Fifth Third Bancorp | Truist Financial vs. Fifth Third Bancorp | Truist Financial vs. First Citizens BancShares | Truist Financial vs. Huntington Bancshares Incorporated |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |