Correlation Between Generations Bancorp and Hancock Whitney

Can any of the company-specific risk be diversified away by investing in both Generations 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 Generations 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 Generations Bancorp NY and Hancock Whitney, you can compare the effects of market volatilities on Generations 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 Generations Bancorp with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generations Bancorp and Hancock Whitney.

Diversification Opportunities for Generations Bancorp and Hancock Whitney

0.0

Correlation Coefficient

Generations Bancorp  Hancock Whitney

Pay attention - limited upside

The 3 months correlation between Generations and Hancock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Generations Bancorp NY and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and Generations 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 Generations Bancorp NY 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 Generations Bancorp i.e., Generations Bancorp and Hancock Whitney go up and down completely randomly.

Pair Corralation between Generations Bancorp and Hancock Whitney

If you would invest (100.00) in Generations Bancorp NY on December 1, 2024 and sell it today you would earn a total of  100.00  from holding Generations Bancorp NY or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Generations Bancorp NY  vs.  Hancock Whitney

Generations Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generations Bancorp NY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Generations Bancorp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hancock Whitney

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hancock Whitney has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Hancock Whitney is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Generations Bancorp and Hancock Whitney

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

The idea behind Generations Bancorp NY and Hancock Whitney 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.