Correlation Between Huntington Bancshares and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and CIFI Holdings 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 CIFI Holdings 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 CIFI Holdings Co, you can compare the effects of market volatilities on Huntington Bancshares and CIFI Holdings 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 CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and CIFI Holdings.
Diversification Opportunities for Huntington Bancshares and CIFI Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huntington and CIFI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings 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 CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and CIFI Holdings go up and down completely randomly.
Pair Corralation between Huntington Bancshares and CIFI Holdings
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to under-perform the CIFI Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Huntington Bancshares Incorporated is 3.81 times less risky than CIFI Holdings. The stock trades about -0.39 of its potential returns per unit of risk. The CIFI Holdings Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2.90 in CIFI Holdings Co on September 24, 2024 and sell it today you would lose (0.05) from holding CIFI Holdings Co or give up 1.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Huntington Bancshares Incorpor vs. CIFI Holdings Co
Performance |
Timeline |
Huntington Bancshares |
CIFI Holdings |
Huntington Bancshares and CIFI Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huntington Bancshares and CIFI Holdings
The main advantage of trading using opposite Huntington Bancshares and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, CIFI Holdings 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.Huntington Bancshares vs. The PNC Financial | Huntington Bancshares vs. MT Bank Corp | Huntington Bancshares vs. Regions Financial | Huntington Bancshares vs. Citizens Financial Group |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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