Correlation Between Hancock Whitney and Treatt Plc
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Treatt Plc 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 Treatt Plc 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 Treatt plc, you can compare the effects of market volatilities on Hancock Whitney and Treatt Plc 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 Treatt Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Treatt Plc.
Diversification Opportunities for Hancock Whitney and Treatt Plc
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hancock and Treatt is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Treatt plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treatt plc 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 Treatt Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treatt plc has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Treatt Plc go up and down completely randomly.
Pair Corralation between Hancock Whitney and Treatt Plc
Considering the 90-day investment horizon Hancock Whitney is expected to generate 1.07 times less return on investment than Treatt Plc. But when comparing it to its historical volatility, Hancock Whitney Corp is 1.43 times less risky than Treatt Plc. It trades about 0.06 of its potential returns per unit of risk. Treatt plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Treatt plc on September 26, 2024 and sell it today you would earn a total of 40.00 from holding Treatt plc or generate 6.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Hancock Whitney Corp vs. Treatt plc
Performance |
Timeline |
Hancock Whitney Corp |
Treatt plc |
Hancock Whitney and Treatt Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hancock Whitney and Treatt Plc
The main advantage of trading using opposite Hancock Whitney and Treatt Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Treatt Plc 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 Treatt Plc will offset losses from the drop in Treatt Plc's long position.Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
Treatt Plc vs. Watsco Inc | Treatt Plc vs. Fastenal Company | Treatt Plc vs. SiteOne Landscape Supply | Treatt Plc vs. Ferguson Plc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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