Correlation Between Huntington Bancshares and AXWAY SOFTWARE

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

Diversification Opportunities for Huntington Bancshares and AXWAY SOFTWARE

-0.25

Correlation Coefficient

Huntington Bancshares  AXWAY SOFTWARE

Very good diversification

The 3 months correlation between Huntington and AXWAY is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO 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 AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and AXWAY SOFTWARE go up and down completely randomly.

Pair Corralation between Huntington Bancshares and AXWAY SOFTWARE

Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.58 times more return on investment than AXWAY SOFTWARE. However, Huntington Bancshares is 1.58 times more volatile than AXWAY SOFTWARE EO. It trades about 0.12 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about 0.01 per unit of risk. If you would invest  1,405  in Huntington Bancshares Incorporated on October 26, 2024 and sell it today you would earn a total of  201.00  from holding Huntington Bancshares Incorporated or generate 14.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Huntington Bancshares Incorpor  vs.  AXWAY SOFTWARE EO

Huntington Bancshares

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Huntington Bancshares Incorporated are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Huntington Bancshares reported solid returns over the last few months and may actually be approaching a breakup point.

AXWAY SOFTWARE EO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AXWAY SOFTWARE EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AXWAY SOFTWARE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Huntington Bancshares and AXWAY SOFTWARE

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

The idea behind Huntington Bancshares Incorporated and AXWAY SOFTWARE EO 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.