Correlation Between MT Bank and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both MT Bank and Huntington Bancshares 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 MT Bank and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on MT Bank and Huntington Bancshares 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 MT Bank with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and Huntington Bancshares.
Diversification Opportunities for MT Bank and Huntington Bancshares
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MTB and Huntington is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and MT Bank 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 MT Bank are associated (or correlated) with Huntington Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Bancshares has no effect on the direction of MT Bank i.e., MT Bank and Huntington Bancshares go up and down completely randomly.
Pair Corralation between MT Bank and Huntington Bancshares
Considering the 90-day investment horizon MT Bank is expected to generate 0.94 times more return on investment than Huntington Bancshares. However, MT Bank is 1.06 times less risky than Huntington Bancshares. It trades about -0.07 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about -0.09 per unit of risk. If you would invest 18,723 in MT Bank on December 29, 2024 and sell it today you would lose (1,195) from holding MT Bank or give up 6.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
MT Bank vs. Huntington Bancshares Incorpor
Performance |
Timeline |
MT Bank |
Huntington Bancshares |
MT Bank and Huntington Bancshares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MT Bank and Huntington Bancshares
The main advantage of trading using opposite MT Bank and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank position performs unexpectedly, Huntington Bancshares 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 Huntington Bancshares will offset losses from the drop in Huntington Bancshares' long position.MT Bank vs. US Bancorp | MT Bank vs. Truist Financial Corp | MT Bank vs. Fifth Third Bancorp | MT Bank vs. KeyCorp |
Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |