Correlation Between Hancock Whitney and China Minsh
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and China Minsh 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 China Minsh 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 China Minsh, you can compare the effects of market volatilities on Hancock Whitney and China Minsh 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 China Minsh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and China Minsh.
Diversification Opportunities for Hancock Whitney and China Minsh
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hancock and China is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and China Minsh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsh 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 China Minsh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsh has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and China Minsh go up and down completely randomly.
Pair Corralation between Hancock Whitney and China Minsh
Considering the 90-day investment horizon Hancock Whitney is expected to generate 2.31 times less return on investment than China Minsh. But when comparing it to its historical volatility, Hancock Whitney Corp is 1.09 times less risky than China Minsh. It trades about 0.03 of its potential returns per unit of risk. China Minsh is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 282.00 in China Minsh on November 19, 2024 and sell it today you would earn a total of 194.00 from holding China Minsh or generate 68.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.97% |
| Values | Daily Returns |
Hancock Whitney Corp vs. China Minsh
Performance |
| Timeline |
| Hancock Whitney Corp |
| China Minsh |
Hancock Whitney and China Minsh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and China Minsh
The main advantage of trading using opposite Hancock Whitney and China Minsh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, China Minsh 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 China Minsh will offset losses from the drop in China Minsh's long position.| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
| China Minsh vs. Hancock Whitney Corp | China Minsh vs. First Hawaiian | China Minsh vs. DBS Group Holdings | China Minsh vs. United Overseas Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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