Correlation Between Huntington Bancshares and PNC Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and PNC 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 PNC 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 The PNC Financial, you can compare the effects of market volatilities on Huntington Bancshares and PNC 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 PNC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and PNC Financial.
Diversification Opportunities for Huntington Bancshares and PNC Financial
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Huntington and PNC is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and The PNC Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC 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 PNC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and PNC Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and PNC Financial
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.09 times more return on investment than PNC Financial. However, Huntington Bancshares is 1.09 times more volatile than The PNC Financial. It trades about 0.32 of its potential returns per unit of risk. The PNC Financial is currently generating about 0.29 per unit of risk. If you would invest 1,418 in Huntington Bancshares Incorporated on August 28, 2024 and sell it today you would earn a total of 283.00 from holding Huntington Bancshares Incorporated or generate 19.96% 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. The PNC Financial
Performance |
| Timeline |
| Huntington Bancshares |
| PNC Financial |
Huntington Bancshares and PNC Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and PNC Financial
The main advantage of trading using opposite Huntington Bancshares and PNC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, PNC 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 PNC Financial will offset losses from the drop in PNC Financial'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 |
| PNC Financial vs. Superior Plus Corp | PNC Financial vs. NMI Holdings | PNC Financial vs. Origin Agritech | PNC Financial vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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