Correlation Between Huntington Bancshares and Nintendo
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Nintendo 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 Nintendo 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 Nintendo Co, you can compare the effects of market volatilities on Huntington Bancshares and Nintendo 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 Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Nintendo.
Diversification Opportunities for Huntington Bancshares and Nintendo
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huntington and Nintendo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo 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 Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Nintendo go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Nintendo
Assuming the 90 days horizon Huntington Bancshares Incorporated is expected to generate 1.16 times more return on investment than Nintendo. However, Huntington Bancshares is 1.16 times more volatile than Nintendo Co. It trades about -0.18 of its potential returns per unit of risk. Nintendo Co is currently generating about -0.47 per unit of risk. If you would invest 1,932 in Huntington Bancshares Incorporated on January 26, 2024 and sell it today you would lose (101.00) from holding Huntington Bancshares Incorporated or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Nintendo Co
Performance |
| Timeline |
| Huntington Bancshares |
| Nintendo |
Huntington Bancshares and Nintendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Nintendo
The main advantage of trading using opposite Huntington Bancshares and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.| Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Huntington Bancshares Incorporated | Huntington Bancshares vs. Washington Federal | Huntington Bancshares vs. Fifth Third Bancorp |
| Nintendo vs. NetEase | Nintendo vs. Nintendo Co ADR | Nintendo vs. Take Two Interactive Software | Nintendo vs. RobloxCorp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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