Correlation Between BankUnited and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both BankUnited and First Hawaiian 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 BankUnited and First Hawaiian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankUnited and First Hawaiian, you can compare the effects of market volatilities on BankUnited and First Hawaiian 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 BankUnited with a short position of First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankUnited and First Hawaiian.
Diversification Opportunities for BankUnited and First Hawaiian
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BankUnited and First is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BankUnited and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian and BankUnited 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 BankUnited are associated (or correlated) with First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of BankUnited i.e., BankUnited and First Hawaiian go up and down completely randomly.
Pair Corralation between BankUnited and First Hawaiian
Considering the 90-day investment horizon BankUnited is expected to generate 1.34 times more return on investment than First Hawaiian. However, BankUnited is 1.34 times more volatile than First Hawaiian. It trades about 0.12 of its potential returns per unit of risk. First Hawaiian is currently generating about 0.0 per unit of risk. If you would invest 3,868 in BankUnited on September 5, 2025 and sell it today you would earn a total of 588.00 from holding BankUnited or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BankUnited vs. First Hawaiian
Performance |
| Timeline |
| BankUnited |
| First Hawaiian |
BankUnited and First Hawaiian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankUnited and First Hawaiian
The main advantage of trading using opposite BankUnited and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankUnited position performs unexpectedly, First Hawaiian 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 First Hawaiian will offset losses from the drop in First Hawaiian's long position.| BankUnited vs. Academy Sports Outdoors | BankUnited vs. InPlay Oil Corp | BankUnited vs. Vishay Intertechnology | BankUnited vs. Playtika Holding Corp |
| First Hawaiian vs. T Mobile US, 5500 | First Hawaiian vs. Southwest Airlines | First Hawaiian vs. World of Wireless | First Hawaiian vs. Spirent Communications plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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