Correlation Between Huntington Bancshares and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Banco Santander 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 Huntington Bancshares and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Bancshares Incorporated and Banco Santander Brasil, you can compare the effects of market volatilities on Huntington Bancshares and Banco Santander 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 Huntington Bancshares with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Banco Santander.
Diversification Opportunities for Huntington Bancshares and Banco Santander
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huntington and Banco is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Banco Santander Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Brasil and Huntington Bancshares 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 Huntington Bancshares Incorporated are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Brasil has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Banco Santander go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Banco Santander
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 1.0 times more return on investment than Banco Santander. However, Huntington Bancshares is 1.0 times more volatile than Banco Santander Brasil. It trades about 0.11 of its potential returns per unit of risk. Banco Santander Brasil is currently generating about -0.23 per unit of risk. If you would invest 1,443 in Huntington Bancshares Incorporated on September 26, 2024 and sell it today you would earn a total of 203.00 from holding Huntington Bancshares Incorporated or generate 14.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Huntington Bancshares Incorpor vs. Banco Santander Brasil
Performance |
Timeline |
Huntington Bancshares |
Banco Santander Brasil |
Huntington Bancshares and Banco Santander Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huntington Bancshares and Banco Santander
The main advantage of trading using opposite Huntington Bancshares and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.Huntington Bancshares vs. Zions Bancorporation | ||
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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