Correlation Between HANCOCK WHITNEY and STORE ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both HANCOCK WHITNEY and STORE ELECTRONIC 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 HANCOCK WHITNEY and STORE ELECTRONIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANCOCK WHITNEY SUNTS and STORE ELECTRONIC, you can compare the effects of market volatilities on HANCOCK WHITNEY and STORE ELECTRONIC 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 HANCOCK WHITNEY with a short position of STORE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANCOCK WHITNEY and STORE ELECTRONIC.
Diversification Opportunities for HANCOCK WHITNEY and STORE ELECTRONIC
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HANCOCK and STORE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HANCOCK WHITNEY SUNTS and STORE ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE ELECTRONIC and HANCOCK WHITNEY 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 HANCOCK WHITNEY SUNTS are associated (or correlated) with STORE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE ELECTRONIC has no effect on the direction of HANCOCK WHITNEY i.e., HANCOCK WHITNEY and STORE ELECTRONIC go up and down completely randomly.
Pair Corralation between HANCOCK WHITNEY and STORE ELECTRONIC
Assuming the 90 days trading horizon HANCOCK WHITNEY is expected to generate 7.38 times less return on investment than STORE ELECTRONIC. But when comparing it to its historical volatility, HANCOCK WHITNEY SUNTS is 3.08 times less risky than STORE ELECTRONIC. It trades about 0.01 of its potential returns per unit of risk. STORE ELECTRONIC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,112 in STORE ELECTRONIC on September 13, 2024 and sell it today you would earn a total of 1,038 from holding STORE ELECTRONIC or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.83% |
| Values | Daily Returns |
HANCOCK WHITNEY SUNTS vs. STORE ELECTRONIC
Performance |
| Timeline |
| HANCOCK WHITNEY SUNTS |
| STORE ELECTRONIC |
HANCOCK WHITNEY and STORE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANCOCK WHITNEY and STORE ELECTRONIC
The main advantage of trading using opposite HANCOCK WHITNEY and STORE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANCOCK WHITNEY position performs unexpectedly, STORE ELECTRONIC 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 STORE ELECTRONIC will offset losses from the drop in STORE ELECTRONIC's long position.| HANCOCK WHITNEY vs. STORE ELECTRONIC | HANCOCK WHITNEY vs. ATOSS SOFTWARE | HANCOCK WHITNEY vs. ELECTRONIC ARTS | HANCOCK WHITNEY vs. LPKF Laser Electronics |
| STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc | STORE ELECTRONIC vs. Apple Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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