Correlation Between Hancock Whitney and OceanFirst Financial
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst Financial Corp, you can compare the effects of market volatilities on Hancock Whitney and OceanFirst Financial 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 OceanFirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and OceanFirst Financial.
Diversification Opportunities for Hancock Whitney and OceanFirst Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hancock and OceanFirst is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and OceanFirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanFirst Financial Corp 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 OceanFirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanFirst Financial Corp has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and OceanFirst Financial go up and down completely randomly.
Pair Corralation between Hancock Whitney and OceanFirst Financial
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 8.59 times more return on investment than OceanFirst Financial. However, Hancock Whitney is 8.59 times more volatile than OceanFirst Financial Corp. It trades about 0.2 of its potential returns per unit of risk. OceanFirst Financial Corp is currently generating about 0.13 per unit of risk. If you would invest 5,139 in Hancock Whitney Corp on September 3, 2024 and sell it today you would earn a total of 799.00 from holding Hancock Whitney Corp or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hancock Whitney Corp vs. OceanFirst Financial Corp
Performance |
| Timeline |
| Hancock Whitney Corp |
| OceanFirst Financial Corp |
Hancock Whitney and OceanFirst Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and OceanFirst Financial
The main advantage of trading using opposite Hancock Whitney and OceanFirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, OceanFirst Financial 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 OceanFirst Financial will offset losses from the drop in OceanFirst Financial's long position.| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
| OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Bank of America | OceanFirst Financial vs. KeyCorp | OceanFirst Financial vs. HUMANA INC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |