Correlation Between Huntington Bancshares and Banco Santander

Specify exactly 2 symbols:
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

HuntingtonBancoDiversified AwayHuntingtonBancoDiversified Away100%
-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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Huntington Bancshares Incorpor  vs.  Banco Santander Brasil

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-1001020
JavaScript chart by amCharts 3.21.15HBAN BSBR
       Timeline  
Huntington Bancshares 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Huntington Bancshares Incorporated are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Huntington Bancshares displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1414.51515.51616.51717.518
Banco Santander Brasil 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Banco Santander Brasil has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec3.844.24.44.64.855.25.4

Huntington Bancshares and Banco Santander Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.49-4.86-3.23-1.60.01.663.385.096.818.53 0.020.040.060.08
JavaScript chart by amCharts 3.21.15HBAN BSBR
       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.
The idea behind Huntington Bancshares Incorporated and Banco Santander Brasil 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.
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.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites