Correlation Between William Penn and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both William Penn 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 William Penn and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between William Penn Bancorp and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on William Penn 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 William Penn with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of William Penn and Huntington Bancshares.
Diversification Opportunities for William Penn and Huntington Bancshares
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between William and Huntington is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding William Penn Bancorp and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and William Penn 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 William Penn Bancorp 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 William Penn i.e., William Penn and Huntington Bancshares go up and down completely randomly.
Pair Corralation between William Penn and Huntington Bancshares
Given the investment horizon of 90 days William Penn is expected to generate 1.1 times less return on investment than Huntington Bancshares. In addition to that, William Penn is 1.84 times more volatile than Huntington Bancshares Incorporated. It trades about 0.06 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.13 per unit of volatility. If you would invest 2,129 in Huntington Bancshares Incorporated on August 31, 2024 and sell it today you would earn a total of 271.00 from holding Huntington Bancshares Incorporated or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
William Penn Bancorp vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| William Penn Bancorp |
| Huntington Bancshares |
William Penn and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with William Penn and Huntington Bancshares
The main advantage of trading using opposite William Penn and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if William Penn 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.| William Penn vs. Home Federal Bancorp | William Penn vs. First Financial Northwest | William Penn vs. First Northwest Bancorp | William Penn vs. First Capital |
| Huntington Bancshares vs. Huntington Bancshares Incorporated | Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. KeyCorp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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