Correlation Between KKRS and Hancock Whitney

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

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

Diversification Opportunities for KKRS and Hancock Whitney

0.61

Correlation Coefficient

KKRS  Hancock Whitney

Poor diversification

The 3 months correlation between KKRS and Hancock is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KKRS and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and KKRS 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 KKRS 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 KKRS i.e., KKRS and Hancock Whitney go up and down completely randomly.

Pair Corralation between KKRS and Hancock Whitney

Given the investment horizon of 90 days KKRS is expected to under-perform the Hancock Whitney. In addition to that, KKRS is 1.03 times more volatile than Hancock Whitney. It trades about -0.1 of its total potential returns per unit of risk. Hancock Whitney is currently generating about 0.0 per unit of volatility. If you would invest  2,457  in Hancock Whitney on September 18, 2024 and sell it today you would lose (7.00) from holding Hancock Whitney or give up 0.28% of portfolio value over 90 days.

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

KKRS  vs.  Hancock Whitney

KKRS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KKRS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Hancock Whitney

Risk-Adjusted Performance

0 of 100

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 KKRS and Hancock Whitney

The main advantage of trading using opposite KKRS and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKRS 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 KKRS 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.