Correlation Between Huntington Bancshares and Deutsche Pfandbriefbank
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank AG, you can compare the effects of market volatilities on Huntington Bancshares and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Deutsche Pfandbriefbank.
Diversification Opportunities for Huntington Bancshares and Deutsche Pfandbriefbank
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huntington and Deutsche is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Deutsche Pfandbriefbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Pfandbriefbank has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Deutsche Pfandbriefbank go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Deutsche Pfandbriefbank
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.03 times more return on investment than Deutsche Pfandbriefbank. However, Huntington Bancshares is 1.03 times more volatile than Deutsche Pfandbriefbank AG. It trades about 0.15 of its potential returns per unit of risk. Deutsche Pfandbriefbank AG is currently generating about -0.15 per unit of risk. If you would invest 1,272 in Huntington Bancshares Incorporated on September 25, 2024 and sell it today you would earn a total of 247.00 from holding Huntington Bancshares Incorporated or generate 19.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Huntington Bancshares Incorpor vs. Deutsche Pfandbriefbank AG
Performance |
Timeline |
Huntington Bancshares |
Deutsche Pfandbriefbank |
Huntington Bancshares and Deutsche Pfandbriefbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huntington Bancshares and Deutsche Pfandbriefbank
The main advantage of trading using opposite Huntington Bancshares and Deutsche Pfandbriefbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank will offset losses from the drop in Deutsche Pfandbriefbank's 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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