Correlation Between Huntington Bancshares and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Huntington 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 Huntington 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 Huntington Bancshares Incorporated and Hancock Whitney Corp, you can compare the effects of market volatilities on Huntington 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 Huntington Bancshares with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Hancock Whitney.
Diversification Opportunities for Huntington Bancshares and Hancock Whitney
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huntington and Hancock is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor 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 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 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 Huntington Bancshares i.e., Huntington Bancshares and Hancock Whitney go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Hancock Whitney
Assuming the 90 days horizon Huntington Bancshares is expected to generate 3.42 times less return on investment than Hancock Whitney. But when comparing it to its historical volatility, Huntington Bancshares Incorporated is 3.66 times less risky than Hancock Whitney. It trades about 0.21 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 5,139 in Hancock Whitney Corp on September 4, 2024 and sell it today you would earn a total of 813.00 from holding Hancock Whitney Corp or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Hancock Whitney Corp
Performance |
| Timeline |
| Huntington Bancshares |
| Hancock Whitney Corp |
Huntington Bancshares and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Hancock Whitney
The main advantage of trading using opposite Huntington Bancshares and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington 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.| Huntington Bancshares vs. Capital One Financial | Huntington Bancshares vs. Bank of America | Huntington Bancshares vs. KeyCorp | Huntington Bancshares vs. HUMANA INC |
| Hancock Whitney vs. International Bancshares | Hancock Whitney vs. Finward Bancorp | Hancock Whitney vs. Aquagold International | Hancock Whitney vs. Thrivent High Yield |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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