Correlation Between Village Bank and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Village 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 Village 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 Village Bank and and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Village 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 Village Bank with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Bank and Huntington Bancshares.
Diversification Opportunities for Village Bank and Huntington Bancshares
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Village and Huntington is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Village Bank and and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and Village 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 Village Bank and 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 Village Bank i.e., Village Bank and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Village Bank and Huntington Bancshares
Given the investment horizon of 90 days Village Bank and is expected to generate 39.22 times more return on investment than Huntington Bancshares. However, Village Bank is 39.22 times more volatile than Huntington Bancshares Incorporated. It trades about 0.07 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.01 per unit of risk. If you would invest 5,246 in Village Bank and on November 5, 2024 and sell it today you would earn a total of 2,514 from holding Village Bank and or generate 47.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.53% |
| Values | Daily Returns |
Village Bank and vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Village Bank |
| Huntington Bancshares |
Village Bank and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Bank and Huntington Bancshares
The main advantage of trading using opposite Village Bank and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village 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.| Village Bank vs. Prime Meridian Holding | Village Bank vs. William Penn Bancorp | Village Bank vs. Pathfinder Bancorp | Village Bank vs. Magyar Bancorp |
| Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Huntington Bancshares Incorporated | Huntington Bancshares vs. Washington Federal | Huntington Bancshares vs. Fifth Third 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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