Correlation Between MT Bank and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both MT Bank and Huntington Bancshares 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 MT Bank and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank Corp and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on MT Bank and Huntington Bancshares 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 MT Bank with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and Huntington Bancshares.
Diversification Opportunities for MT Bank and Huntington Bancshares
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MTZ and Huntington is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank Corp and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and MT Bank 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 MT Bank Corp are associated (or correlated) with Huntington Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Bancshares has no effect on the direction of MT Bank i.e., MT Bank and Huntington Bancshares go up and down completely randomly.
Pair Corralation between MT Bank and Huntington Bancshares
Assuming the 90 days horizon MT Bank is expected to generate 1.13 times less return on investment than Huntington Bancshares. In addition to that, MT Bank is 1.13 times more volatile than Huntington Bancshares Incorporated. It trades about 0.22 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.28 per unit of volatility. If you would invest 1,437 in Huntington Bancshares Incorporated on September 1, 2024 and sell it today you would earn a total of 256.00 from holding Huntington Bancshares Incorporated or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MT Bank Corp vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| MT Bank Corp |
| Huntington Bancshares |
MT Bank and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT Bank and Huntington Bancshares
The main advantage of trading using opposite MT Bank and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank position performs unexpectedly, Huntington Bancshares 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 Huntington Bancshares will offset losses from the drop in Huntington Bancshares' long position.| MT Bank vs. SERI INDUSTRIAL EO | MT Bank vs. Playtech plc | MT Bank vs. Zijin Mining Group | MT Bank vs. Madison Square Garden |
| Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Regions Financial | Huntington Bancshares vs. Superior Plus Corp | Huntington Bancshares vs. Origin Agritech |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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