Correlation Between Aquagold International and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Hancock Whitney 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 Aquagold International and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Hancock Whitney Corp, you can compare the effects of market volatilities on Aquagold International and Hancock Whitney 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 Aquagold International with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Hancock Whitney.
Diversification Opportunities for Aquagold International and Hancock Whitney
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Hancock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Hancock Whitney Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney Corp and Aquagold International 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 Aquagold International are associated (or correlated) with Hancock Whitney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancock Whitney Corp has no effect on the direction of Aquagold International i.e., Aquagold International and Hancock Whitney go up and down completely randomly.
Pair Corralation between Aquagold International and Hancock Whitney
Given the investment horizon of 90 days Aquagold International is expected to generate 22.29 times more return on investment than Hancock Whitney. However, Aquagold International is 22.29 times more volatile than Hancock Whitney Corp. It trades about 0.06 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.03 per unit of risk. If you would invest 21.00 in Aquagold International on September 12, 2024 and sell it today you would lose (20.40) from holding Aquagold International or give up 97.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aquagold International vs. Hancock Whitney Corp
Performance |
| Timeline |
| Aquagold International |
| Hancock Whitney Corp |
Aquagold International and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Hancock Whitney
The main advantage of trading using opposite Aquagold International and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Hancock Whitney 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 Hancock Whitney will offset losses from the drop in Hancock Whitney's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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