Correlation Between Wintrust Financial and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial 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 Wintrust Financial and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintrust Financial and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Wintrust Financial 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 Wintrust Financial with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and Huntington Bancshares.
Diversification Opportunities for Wintrust Financial and Huntington Bancshares
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wintrust and Huntington is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and Wintrust Financial 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 Wintrust Financial 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 Wintrust Financial i.e., Wintrust Financial and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Wintrust Financial and Huntington Bancshares
Given the investment horizon of 90 days Wintrust Financial is expected to generate 3.24 times more return on investment than Huntington Bancshares. However, Wintrust Financial is 3.24 times more volatile than Huntington Bancshares Incorporated. It trades about 0.27 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.2 per unit of risk. If you would invest 11,549 in Wintrust Financial on September 1, 2024 and sell it today you would earn a total of 2,252 from holding Wintrust Financial or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wintrust Financial vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Wintrust Financial |
| Huntington Bancshares |
Wintrust Financial and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and Huntington Bancshares
The main advantage of trading using opposite Wintrust Financial and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial 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.| Wintrust Financial vs. Bank of Marin | Wintrust Financial vs. First Financial | Wintrust Financial vs. TriCo Bancshares | Wintrust Financial vs. Community Trust Bancorp |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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