Correlation Between Thrivent High and Hancock Whitney

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

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

Diversification Opportunities for Thrivent High and Hancock Whitney

0.6

Correlation Coefficient

Thrivent High  Hancock Whitney

Poor diversification

The 3 months correlation between Thrivent and Hancock is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and Hancock Whitney go up and down completely randomly.

Pair Corralation between Thrivent High and Hancock Whitney

Assuming the 90 days horizon Thrivent High is expected to generate 15.22 times less return on investment than Hancock Whitney. But when comparing it to its historical volatility, Thrivent High Yield is 16.91 times less risky than Hancock Whitney. It trades about 0.15 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,828  in Hancock Whitney Corp on September 12, 2024 and sell it today you would earn a total of  1,071  from holding Hancock Whitney Corp or generate 22.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Thrivent High Yield  vs.  Hancock Whitney Corp

Thrivent High Yield

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hancock Whitney Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hancock Whitney Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Hancock Whitney exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thrivent High and Hancock Whitney

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

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.