Correlation Between Hancock Whitney and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Regions 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 Regions 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 Regions Financial, you can compare the effects of market volatilities on Hancock Whitney and Regions 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Regions Financial.
Diversification Opportunities for Hancock Whitney and Regions Financial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hancock and Regions is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Regions Financial go up and down completely randomly.
Pair Corralation between Hancock Whitney and Regions Financial
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.41 times more return on investment than Regions Financial. However, Hancock Whitney is 1.41 times more volatile than Regions Financial. It trades about 0.17 of its potential returns per unit of risk. Regions Financial is currently generating about 0.22 per unit of risk. If you would invest 5,307 in Hancock Whitney Corp on August 29, 2024 and sell it today you would earn a total of 727.00 from holding Hancock Whitney Corp or generate 13.7% 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. Regions Financial
Performance |
| Timeline |
| Hancock Whitney Corp |
| Regions Financial |
Hancock Whitney and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and Regions Financial
The main advantage of trading using opposite Hancock Whitney and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Regions 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 Regions Financial will offset losses from the drop in Regions 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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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