Correlation Between WCF Bancorp and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both WCF Bancorp 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 WCF Bancorp and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WCF Bancorp and Hancock Whitney, you can compare the effects of market volatilities on WCF Bancorp 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 WCF Bancorp with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of WCF Bancorp and Hancock Whitney.
Diversification Opportunities for WCF Bancorp and Hancock Whitney
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WCF and Hancock is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding WCF Bancorp and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and WCF Bancorp 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 WCF Bancorp 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 has no effect on the direction of WCF Bancorp i.e., WCF Bancorp and Hancock Whitney go up and down completely randomly.
Pair Corralation between WCF Bancorp and Hancock Whitney
If you would invest 2,461 in Hancock Whitney on August 31, 2024 and sell it today you would earn a total of 72.00 from holding Hancock Whitney or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
WCF Bancorp vs. Hancock Whitney
Performance |
| Timeline |
| WCF Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hancock Whitney |
WCF Bancorp and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WCF Bancorp and Hancock Whitney
The main advantage of trading using opposite WCF Bancorp and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WCF Bancorp 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.| WCF Bancorp vs. CCSB Financial Corp | WCF Bancorp vs. Delhi Bank Corp | WCF Bancorp vs. Bank of Utica | WCF Bancorp vs. First Community Financial |
| Hancock Whitney vs. Office Properties Income | Hancock Whitney vs. Brighthouse Financial | Hancock Whitney vs. American Financial Group | Hancock Whitney vs. American Financial Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |