Correlation Between Huntington Bancshares and Apple
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Huntington Bancshares and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Apple.
Diversification Opportunities for Huntington Bancshares and Apple
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huntington and Apple is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Apple go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Apple
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 0.96 times more return on investment than Apple. However, Huntington Bancshares Incorporated is 1.05 times less risky than Apple. It trades about -0.02 of its potential returns per unit of risk. Apple Inc is currently generating about -0.19 per unit of risk. If you would invest 1,332 in Huntington Bancshares Incorporated on January 20, 2024 and sell it today you would lose (14.00) from holding Huntington Bancshares Incorporated or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Apple Inc
Performance |
| Timeline |
| Huntington Bancshares |
| Apple Inc |
Huntington Bancshares and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Apple
The main advantage of trading using opposite Huntington Bancshares and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.The idea behind Huntington Bancshares Incorporated and Apple Inc 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.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 CEOs Directory module to screen CEOs from public companies around the world.
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