Correlation Between Home Bancorp and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Home Bancorp 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 Home Bancorp and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Bancorp and Hancock Whitney Corp, you can compare the effects of market volatilities on Home Bancorp 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 Home Bancorp with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Bancorp and Hancock Whitney.
Diversification Opportunities for Home Bancorp and Hancock Whitney
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Home and Hancock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Home Bancorp 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 Home Bancorp 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 Home Bancorp 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 Home Bancorp i.e., Home Bancorp and Hancock Whitney go up and down completely randomly.
Pair Corralation between Home Bancorp and Hancock Whitney
Given the investment horizon of 90 days Home Bancorp is expected to generate 0.96 times more return on investment than Hancock Whitney. However, Home Bancorp is 1.04 times less risky than Hancock Whitney. It trades about 0.03 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 4,029 in Home Bancorp on August 29, 2024 and sell it today you would earn a total of 1,049 from holding Home Bancorp or generate 26.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Bancorp vs. Hancock Whitney Corp
Performance |
| Timeline |
| Home Bancorp |
| Hancock Whitney Corp |
Home Bancorp and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Bancorp and Hancock Whitney
The main advantage of trading using opposite Home Bancorp and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Bancorp 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.| Home Bancorp vs. Home Federal Bancorp | Home Bancorp vs. Community West Bancshares | Home Bancorp vs. First Financial Northwest | Home Bancorp vs. First Capital |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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