Correlation Between Huntington Bancshares and SCIENCE IN
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and SCIENCE IN 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 SCIENCE IN 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 SCIENCE IN SPORT, you can compare the effects of market volatilities on Huntington Bancshares and SCIENCE IN 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 SCIENCE IN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and SCIENCE IN.
Diversification Opportunities for Huntington Bancshares and SCIENCE IN
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huntington and SCIENCE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and SCIENCE IN SPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCIENCE IN SPORT 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 SCIENCE IN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCIENCE IN SPORT has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and SCIENCE IN go up and down completely randomly.
Pair Corralation between Huntington Bancshares and SCIENCE IN
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.13 times more return on investment than SCIENCE IN. However, Huntington Bancshares is 1.13 times more volatile than SCIENCE IN SPORT. It trades about 0.34 of its potential returns per unit of risk. SCIENCE IN SPORT is currently generating about 0.01 per unit of risk. If you would invest 1,418 in Huntington Bancshares Incorporated on August 29, 2024 and sell it today you would earn a total of 304.00 from holding Huntington Bancshares Incorporated or generate 21.44% 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. SCIENCE IN SPORT
Performance |
| Timeline |
| Huntington Bancshares |
| SCIENCE IN SPORT |
Huntington Bancshares and SCIENCE IN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and SCIENCE IN
The main advantage of trading using opposite Huntington Bancshares and SCIENCE IN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, SCIENCE IN 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 SCIENCE IN will offset losses from the drop in SCIENCE IN's long position.| Huntington Bancshares vs. Superior Plus Corp | Huntington Bancshares vs. NMI Holdings | Huntington Bancshares vs. Origin Agritech | Huntington Bancshares vs. SIVERS SEMICONDUCTORS AB |
| SCIENCE IN vs. CNVISION MEDIA | SCIENCE IN vs. GigaMedia | SCIENCE IN vs. Live Nation Entertainment | SCIENCE IN vs. CarsalesCom |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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