Correlation Between Hancock Whitney and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and First Hawaiian 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 First Hawaiian 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 First Hawaiian, you can compare the effects of market volatilities on Hancock Whitney and First Hawaiian 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 First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and First Hawaiian.
Diversification Opportunities for Hancock Whitney and First Hawaiian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hancock and First is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian 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 First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and First Hawaiian go up and down completely randomly.
Pair Corralation between Hancock Whitney and First Hawaiian
Considering the 90-day investment horizon Hancock Whitney is expected to generate 1.03 times less return on investment than First Hawaiian. In addition to that, Hancock Whitney is 1.32 times more volatile than First Hawaiian. It trades about 0.2 of its total potential returns per unit of risk. First Hawaiian is currently generating about 0.27 per unit of volatility. If you would invest 2,373 in First Hawaiian on August 26, 2024 and sell it today you would earn a total of 417.00 from holding First Hawaiian or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hancock Whitney Corp vs. First Hawaiian
Performance |
| Timeline |
| Hancock Whitney Corp |
| First Hawaiian |
Hancock Whitney and First Hawaiian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and First Hawaiian
The main advantage of trading using opposite Hancock Whitney and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, First Hawaiian 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 First Hawaiian will offset losses from the drop in First Hawaiian's long position.| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
| First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage Financial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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