Correlation Between Equity Bancshares, and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Equity Bancshares, 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 Equity Bancshares, and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Bancshares, and Hancock Whitney Corp, you can compare the effects of market volatilities on Equity Bancshares, 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 Equity Bancshares, with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Bancshares, and Hancock Whitney.
Diversification Opportunities for Equity Bancshares, and Hancock Whitney
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Equity and Hancock is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Equity Bancshares, 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 Equity 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 Equity Bancshares, 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 Equity Bancshares, i.e., Equity Bancshares, and Hancock Whitney go up and down completely randomly.
Pair Corralation between Equity Bancshares, and Hancock Whitney
Given the investment horizon of 90 days Equity Bancshares, is expected to generate 1.08 times more return on investment than Hancock Whitney. However, Equity Bancshares, is 1.08 times more volatile than Hancock Whitney Corp. It trades about -0.11 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about -0.24 per unit of risk. If you would invest 4,423 in Equity Bancshares, on November 27, 2024 and sell it today you would lose (131.00) from holding Equity Bancshares, or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equity Bancshares, vs. Hancock Whitney Corp
Performance |
| Timeline |
| Equity Bancshares, |
| Hancock Whitney Corp |
Equity Bancshares, and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Bancshares, and Hancock Whitney
The main advantage of trading using opposite Equity Bancshares, and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Bancshares, 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.| Equity Bancshares, vs. Brookline Bancorp | Equity Bancshares, vs. Kearny Financial Corp | Equity Bancshares, vs. Heritage Financial | Equity Bancshares, vs. FVCBankcorp |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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