Correlation Between Hancock Whitney and ConnectOne Bancorp
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and ConnectOne Bancorp 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 ConnectOne Bancorp 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 ConnectOne Bancorp, you can compare the effects of market volatilities on Hancock Whitney and ConnectOne Bancorp 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 ConnectOne Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and ConnectOne Bancorp.
Diversification Opportunities for Hancock Whitney and ConnectOne Bancorp
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hancock and ConnectOne is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and ConnectOne Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectOne Bancorp 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 ConnectOne Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectOne Bancorp has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and ConnectOne Bancorp go up and down completely randomly.
Pair Corralation between Hancock Whitney and ConnectOne Bancorp
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.74 times more return on investment than ConnectOne Bancorp. However, Hancock Whitney is 1.74 times more volatile than ConnectOne Bancorp. It trades about 0.07 of its potential returns per unit of risk. ConnectOne Bancorp is currently generating about 0.09 per unit of risk. If you would invest 4,383 in Hancock Whitney Corp on September 4, 2024 and sell it today you would earn a total of 1,569 from holding Hancock Whitney Corp or generate 35.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hancock Whitney Corp vs. ConnectOne Bancorp
Performance |
| Timeline |
| Hancock Whitney Corp |
| ConnectOne Bancorp |
Hancock Whitney and ConnectOne Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and ConnectOne Bancorp
The main advantage of trading using opposite Hancock Whitney and ConnectOne Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, ConnectOne Bancorp 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 ConnectOne Bancorp will offset losses from the drop in ConnectOne Bancorp's long position.| Hancock Whitney vs. International Bancshares | Hancock Whitney vs. Finward Bancorp | Hancock Whitney vs. Aquagold International | Hancock Whitney vs. Thrivent High Yield |
| ConnectOne Bancorp vs. Dime Community Bancshares | ConnectOne Bancorp vs. Washington Federal | ConnectOne Bancorp vs. CNB Financial | ConnectOne Bancorp vs. First Guaranty Bancshares |
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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