Correlation Between High Country and Hancock Whitney

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

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

Diversification Opportunities for High Country and Hancock Whitney

0.0

Correlation Coefficient

High Country  Hancock Whitney

Pay attention - limited upside

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

Pair Corralation between High Country and Hancock Whitney

If you would invest (100.00) in High Country Bancorp on December 1, 2024 and sell it today you would earn a total of  100.00  from holding High Country Bancorp 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

High Country Bancorp  vs.  Hancock Whitney

High Country Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days High Country Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, High Country is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 High Country and Hancock Whitney

The main advantage of trading using opposite High Country and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Country 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 High Country Bancorp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.