Correlation Between United Bankshares and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both United Bankshares 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 United Bankshares and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Bankshares and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on United Bankshares 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 United Bankshares with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bankshares and Huntington Bancshares.
Diversification Opportunities for United Bankshares and Huntington Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Huntington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Bankshares and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and United Bankshares 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 United Bankshares 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 United Bankshares i.e., United Bankshares and Huntington Bancshares go up and down completely randomly.
Pair Corralation between United Bankshares and Huntington Bancshares
If you would invest (100.00) in Huntington Bancshares Incorporated on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Huntington Bancshares Incorporated or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Bankshares vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| United Bankshares |
| Huntington Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Bankshares and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Bankshares and Huntington Bancshares
The main advantage of trading using opposite United Bankshares and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bankshares 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.The idea behind United Bankshares and Huntington Bancshares Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Huntington Bancshares vs. National Beverage Corp | Huntington Bancshares vs. National CineMedia | Huntington Bancshares vs. Grocery Outlet Holding | Huntington Bancshares vs. Townsquare Media |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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