Correlation Between Hancock Whitney and Bank of Hawaii
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Bank of Hawaii 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 Bank of Hawaii into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hancock Whitney Corp and Bank of Hawaii, you can compare the effects of market volatilities on Hancock Whitney and Bank of Hawaii 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 Bank of Hawaii. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Bank of Hawaii.
Diversification Opportunities for Hancock Whitney and Bank of Hawaii
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hancock and Bank is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Bank of Hawaii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Hawaii 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 Corp are associated (or correlated) with Bank of Hawaii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Hawaii has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Bank of Hawaii go up and down completely randomly.
Pair Corralation between Hancock Whitney and Bank of Hawaii
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 0.99 times more return on investment than Bank of Hawaii. However, Hancock Whitney Corp is 1.01 times less risky than Bank of Hawaii. It trades about 0.34 of its potential returns per unit of risk. Bank of Hawaii is currently generating about 0.14 per unit of risk. If you would invest 5,325 in Hancock Whitney Corp on October 20, 2024 and sell it today you would earn a total of 585.00 from holding Hancock Whitney Corp or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hancock Whitney Corp vs. Bank of Hawaii
Performance |
| Timeline |
| Hancock Whitney Corp |
| Bank of Hawaii |
Hancock Whitney and Bank of Hawaii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and Bank of Hawaii
The main advantage of trading using opposite Hancock Whitney and Bank of Hawaii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Bank of Hawaii 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 Bank of Hawaii will offset losses from the drop in Bank of Hawaii's long position.| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
| Bank of Hawaii vs. Central Pacific Financial | Bank of Hawaii vs. Territorial Bancorp | Bank of Hawaii vs. First Bancorp | Bank of Hawaii vs. Hancock Whitney Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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