Correlation Between Signature Bank and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Signature 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 Signature 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 Signature Bank and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Signature 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 Signature Bank with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Bank and Huntington Bancshares.
Diversification Opportunities for Signature Bank and Huntington Bancshares
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Signature and Huntington is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Signature Bank and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and Signature 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 Signature Bank 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 Signature Bank i.e., Signature Bank and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Signature Bank and Huntington Bancshares
Assuming the 90 days horizon Signature Bank is expected to generate 24.22 times more return on investment than Huntington Bancshares. However, Signature Bank is 24.22 times more volatile than Huntington Bancshares Incorporated. It trades about 0.23 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.11 per unit of risk. If you would invest 2.50 in Signature Bank on August 29, 2024 and sell it today you would lose (0.80) from holding Signature Bank or give up 32.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.23% |
| Values | Daily Returns |
Signature Bank vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huntington Bancshares |
Signature Bank and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Bank and Huntington Bancshares
The main advantage of trading using opposite Signature Bank and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature 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.| Signature Bank vs. Braskem SA Class | Signature Bank vs. Organic Sales and | Signature Bank vs. Ecolab Inc | Signature Bank vs. The Mosaic |
| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |