Correlation Between Zions Bancorporation and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Zions Bancorporation 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 Zions Bancorporation and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zions Bancorporation National and Hancock Whitney, you can compare the effects of market volatilities on Zions Bancorporation 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 Zions Bancorporation with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zions Bancorporation and Hancock Whitney.
Diversification Opportunities for Zions Bancorporation and Hancock Whitney
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zions and Hancock is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zions Bancorp. National and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and Zions Bancorporation 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 Zions Bancorporation National 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 Zions Bancorporation i.e., Zions Bancorporation and Hancock Whitney go up and down completely randomly.
Pair Corralation between Zions Bancorporation and Hancock Whitney
Assuming the 90 days horizon Zions Bancorporation National is expected to generate 1.27 times more return on investment than Hancock Whitney. However, Zions Bancorporation is 1.27 times more volatile than Hancock Whitney. It trades about 0.09 of its potential returns per unit of risk. Hancock Whitney is currently generating about 0.04 per unit of risk. If you would invest 1,891 in Zions Bancorporation National on August 29, 2024 and sell it today you would earn a total of 469.00 from holding Zions Bancorporation National or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zions Bancorp. National vs. Hancock Whitney
Performance |
| Timeline |
| Zions Bancorporation |
| Hancock Whitney |
Zions Bancorporation and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zions Bancorporation and Hancock Whitney
The main advantage of trading using opposite Zions Bancorporation and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zions Bancorporation 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.| Zions Bancorporation vs. Capital One Financial | Zions Bancorporation vs. Capital One Financial | Zions Bancorporation vs. Bank of America |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |