Correlation Between Huntington Bancshares and NYCB Old

Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and NYCB Old 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 NYCB Old 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 NYCB Old, you can compare the effects of market volatilities on Huntington Bancshares and NYCB Old 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 NYCB Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and NYCB Old.

Diversification Opportunities for Huntington Bancshares and NYCB Old

0.0

Correlation Coefficient

Huntington Bancshares  NYCB Old

Pay attention - limited upside

The 3 months correlation between Huntington and NYCB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and NYCB Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYCB Old 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 NYCB Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYCB Old has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and NYCB Old go up and down completely randomly.

Pair Corralation between Huntington Bancshares and NYCB Old

If you would invest (100.00) in NYCB Old on December 29, 2024 and sell it today you would earn a total of  100.00  from holding NYCB Old 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

Huntington Bancshares Incorpor  vs.  NYCB Old

Huntington Bancshares

Risk-Adjusted Performance

Very Weak

Over the last 90 days Huntington Bancshares Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

NYCB Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days NYCB Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, NYCB Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Huntington Bancshares and NYCB Old

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

The idea behind Huntington Bancshares Incorporated and NYCB Old 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.