Correlation Between Hancock Whitney and Hilltop Holdings
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Hilltop Holdings 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 Hilltop Holdings 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 Hilltop Holdings, you can compare the effects of market volatilities on Hancock Whitney and Hilltop Holdings 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 Hilltop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Hilltop Holdings.
Diversification Opportunities for Hancock Whitney and Hilltop Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hancock and Hilltop is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Hilltop Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilltop Holdings 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 Hilltop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilltop Holdings has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Hilltop Holdings go up and down completely randomly.
Pair Corralation between Hancock Whitney and Hilltop Holdings
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.37 times more return on investment than Hilltop Holdings. However, Hancock Whitney is 1.37 times more volatile than Hilltop Holdings. It trades about 0.18 of its potential returns per unit of risk. Hilltop Holdings is currently generating about 0.08 per unit of risk. If you would invest 5,208 in Hancock Whitney Corp on September 1, 2024 and sell it today you would earn a total of 730.00 from holding Hancock Whitney Corp or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hancock Whitney Corp vs. Hilltop Holdings
Performance |
| Timeline |
| Hancock Whitney Corp |
| Hilltop Holdings |
Hancock Whitney and Hilltop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and Hilltop Holdings
The main advantage of trading using opposite Hancock Whitney and Hilltop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Hilltop Holdings 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 Hilltop Holdings will offset losses from the drop in Hilltop Holdings' long position.| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
| Hilltop Holdings vs. Home Federal Bancorp | Hilltop Holdings vs. First Financial Northwest | Hilltop Holdings vs. First Northwest Bancorp | Hilltop Holdings vs. First Capital |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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