Correlation Between Huntington Bancshares and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on Huntington Bancshares and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Regions Financial.
Diversification Opportunities for Huntington Bancshares and Regions Financial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huntington and Regions is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and Regions Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Regions Financial
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to under-perform the Regions Financial. In addition to that, Huntington Bancshares is 1.04 times more volatile than Regions Financial. It trades about -0.03 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.0 per unit of volatility. If you would invest 2,676 in Regions Financial on September 11, 2025 and sell it today you would lose (8.00) from holding Regions Financial or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Regions Financial
Performance |
| Timeline |
| Huntington Bancshares |
| Regions Financial |
Huntington Bancshares and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Regions Financial
The main advantage of trading using opposite Huntington Bancshares and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| Huntington Bancshares vs. Regions Financial | Huntington Bancshares vs. First Citizens BancShares | Huntington Bancshares vs. Citizens Financial Group, | Huntington Bancshares vs. Shinhan Financial Group |
| Regions Financial vs. Huntington Bancshares Incorporated | Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. MT Bank | Regions Financial vs. Citizens Financial Group, |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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