Correlation Between China Minsh and Hancock Whitney

Can any of the company-specific risk be diversified away by investing in both China Minsh 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 China Minsh and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China Minsh and Hancock Whitney Corp, you can compare the effects of market volatilities on China Minsh 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 China Minsh with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsh and Hancock Whitney.

Diversification Opportunities for China Minsh and Hancock Whitney

0.05

Correlation Coefficient

China Minsh  Hancock Whitney

Significant diversification

The 3 months correlation between China and Hancock is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Minsh 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 China Minsh 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 China Minsh 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 China Minsh i.e., China Minsh and Hancock Whitney go up and down completely randomly.

Pair Corralation between China Minsh and Hancock Whitney

Assuming the 90 days horizon China Minsh is expected to generate 3.12 times more return on investment than Hancock Whitney. However, China Minsh is 3.12 times more volatile than Hancock Whitney Corp. It trades about 0.04 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.03 per unit of risk. If you would invest  334.00  in China Minsh on September 26, 2024 and sell it today you would earn a total of  64.00  from holding China Minsh or generate 19.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.08%
Values	Daily Returns

China Minsh  vs.  Hancock Whitney Corp

China Minsh

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in China Minsh are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward-looking signals, China Minsh may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hancock Whitney Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hancock Whitney Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Hancock Whitney may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with China Minsh and Hancock Whitney

The main advantage of trading using opposite China Minsh and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsh 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.

The idea behind China Minsh and Hancock Whitney Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.