Correlation Between FB Financial and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both FB Financial 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 FB Financial and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FB Financial Corp and Hancock Whitney Corp, you can compare the effects of market volatilities on FB Financial 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 FB Financial with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of FB Financial and Hancock Whitney.
Diversification Opportunities for FB Financial and Hancock Whitney
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FBK and Hancock is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding FB Financial Corp 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 FB Financial 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 FB Financial Corp 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 FB Financial i.e., FB Financial and Hancock Whitney go up and down completely randomly.
Pair Corralation between FB Financial and Hancock Whitney
Considering the 90-day investment horizon FB Financial is expected to generate 5.98 times less return on investment than Hancock Whitney. But when comparing it to its historical volatility, FB Financial Corp is 1.02 times less risky than Hancock Whitney. It trades about 0.05 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 5,473 in Hancock Whitney Corp on October 24, 2024 and sell it today you would earn a total of 437.00 from holding Hancock Whitney Corp or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FB Financial Corp vs. Hancock Whitney Corp
Performance |
| Timeline |
| FB Financial Corp |
| Hancock Whitney Corp |
FB Financial and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FB Financial and Hancock Whitney
The main advantage of trading using opposite FB Financial and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FB Financial 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.| FB Financial vs. Home Bancorp | FB Financial vs. First Business Financial | FB Financial vs. LINKBANCORP | FB Financial vs. Great Southern Bancorp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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