Correlation Between LINKBANCORP and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both LINKBANCORP and Hancock Whitney 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 LINKBANCORP and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LINKBANCORP and Hancock Whitney Corp, you can compare the effects of market volatilities on LINKBANCORP and Hancock Whitney 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 LINKBANCORP with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of LINKBANCORP and Hancock Whitney.
Diversification Opportunities for LINKBANCORP and Hancock Whitney
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LINKBANCORP and Hancock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP and Hancock Whitney Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney Corp and LINKBANCORP 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 LINKBANCORP are associated (or correlated) with Hancock Whitney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancock Whitney Corp has no effect on the direction of LINKBANCORP i.e., LINKBANCORP and Hancock Whitney go up and down completely randomly.
Pair Corralation between LINKBANCORP and Hancock Whitney
Given the investment horizon of 90 days LINKBANCORP is expected to generate 8.19 times less return on investment than Hancock Whitney. In addition to that, LINKBANCORP is 1.04 times more volatile than Hancock Whitney Corp. It trades about 0.0 of its total potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.03 per unit of volatility. If you would invest 4,962 in Hancock Whitney Corp on August 29, 2024 and sell it today you would earn a total of 1,032 from holding Hancock Whitney Corp or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LINKBANCORP vs. Hancock Whitney Corp
Performance |
| Timeline |
| LINKBANCORP |
| Hancock Whitney Corp |
LINKBANCORP and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LINKBANCORP and Hancock Whitney
The main advantage of trading using opposite LINKBANCORP and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LINKBANCORP position performs unexpectedly, Hancock Whitney 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 Hancock Whitney will offset losses from the drop in Hancock Whitney's long position.| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar Bancorp |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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