Correlation Between US Global and HUNTINGTON

Can any of the company-specific risk be diversified away by investing in both US Global and HUNTINGTON 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 US Global and HUNTINGTON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US Global Investors and HUNTINGTON BANCSHARES INC, you can compare the effects of market volatilities on US Global and HUNTINGTON 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 US Global with a short position of HUNTINGTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and HUNTINGTON.

Diversification Opportunities for US Global and HUNTINGTON

0.38

Correlation Coefficient

US Global  HUNTINGTON

Weak diversification

The 3 months correlation between GROW and HUNTINGTON is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and HUNTINGTON BANCSHARES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUNTINGTON BANCSHARES INC and US Global 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 US Global Investors are associated (or correlated) with HUNTINGTON. 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 INC has no effect on the direction of US Global i.e., US Global and HUNTINGTON go up and down completely randomly.

Pair Corralation between US Global and HUNTINGTON

Given the investment horizon of 90 days US Global Investors is expected to generate 1.43 times more return on investment than HUNTINGTON. However, US Global is 1.43 times more volatile than HUNTINGTON BANCSHARES INC. It trades about 0.03 of its potential returns per unit of risk. HUNTINGTON BANCSHARES INC is currently generating about -0.12 per unit of risk. If you would invest  240.00  in US Global Investors on September 23, 2024 and sell it today you would earn a total of  3.00  from holding US Global Investors or generate 1.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.67%
Values	Daily Returns

US Global Investors  vs.  HUNTINGTON BANCSHARES INC

US Global Investors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

HUNTINGTON BANCSHARES INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HUNTINGTON BANCSHARES INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUNTINGTON BANCSHARES INC investors.

Pair Trading with US Global and HUNTINGTON

The main advantage of trading using opposite US Global and HUNTINGTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, HUNTINGTON 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 will offset losses from the drop in HUNTINGTON's long position.

The idea behind US Global Investors and HUNTINGTON BANCSHARES INC 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.