Correlation Between Hancock Whitney and China Minsh

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

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

Diversification Opportunities for Hancock Whitney and China Minsh

0.12

Correlation Coefficient

Hancock Whitney  China Minsh

Average diversification

The 3 months correlation between Hancock and China is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and China Minsh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsh and Hancock Whitney 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 Hancock Whitney Corp are associated (or correlated) with China Minsh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsh has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and China Minsh go up and down completely randomly.

Pair Corralation between Hancock Whitney and China Minsh

Considering the 90-day investment horizon Hancock Whitney Corp is expected to under-perform the China Minsh. In addition to that, Hancock Whitney is 1.26 times more volatile than China Minsh. It trades about -0.26 of its total potential returns per unit of risk. China Minsh is currently generating about 0.21 per unit of volatility. If you would invest  376.00  in China Minsh on September 26, 2024 and sell it today you would earn a total of  22.00  from holding China Minsh or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hancock Whitney Corp  vs.  China Minsh

Hancock Whitney Corp

Risk-Adjusted Performance

4 of 100

Modest

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 inconsistent basic indicators, Hancock Whitney may actually be approaching a critical reversion point that can send shares even higher in January 2025.

China Minsh

Risk-Adjusted Performance

3 of 100

Modest

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.

Pair Trading with Hancock Whitney and China Minsh

The main advantage of trading using opposite Hancock Whitney and China Minsh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, China Minsh 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 China Minsh will offset losses from the drop in China Minsh's long position.

The idea behind Hancock Whitney Corp and China Minsh 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.