Correlation Between Washington Federal and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Washington Federal 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 Washington Federal and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Federal and Hancock Whitney Corp, you can compare the effects of market volatilities on Washington Federal 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 Washington Federal with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Federal and Hancock Whitney.
Diversification Opportunities for Washington Federal and Hancock Whitney
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Washington and Hancock is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Washington Federal 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 Washington Federal 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 Washington Federal 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 Washington Federal i.e., Washington Federal and Hancock Whitney go up and down completely randomly.
Pair Corralation between Washington Federal and Hancock Whitney
Assuming the 90 days horizon Washington Federal is expected to generate 0.4 times more return on investment than Hancock Whitney. However, Washington Federal is 2.5 times less risky than Hancock Whitney. It trades about -0.16 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about -0.24 per unit of risk. If you would invest 1,689 in Washington Federal on November 27, 2024 and sell it today you would lose (27.00) from holding Washington Federal or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Washington Federal vs. Hancock Whitney Corp
Performance |
| Timeline |
| Washington Federal |
| Hancock Whitney Corp |
Washington Federal and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Federal and Hancock Whitney
The main advantage of trading using opposite Washington Federal and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Federal 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.| Washington Federal vs. Fulton Financial | Washington Federal vs. Texas Capital Bancshares | Washington Federal vs. Huntington Bancshares Incorporated | Washington Federal vs. Wintrust Financial Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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