Correlation Between Salesforce and Hancock Whitney

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

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

Diversification Opportunities for Salesforce and Hancock Whitney

-0.41

Correlation Coefficient

Salesforce  Hancock Whitney

Very good diversification

The 3 months correlation between Salesforce and Hancock is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce 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 Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and Hancock Whitney go up and down completely randomly.

Pair Corralation between Salesforce and Hancock Whitney

Considering the 90-day investment horizon Salesforce is expected to under-perform the Hancock Whitney. In addition to that, Salesforce is 1.86 times more volatile than Hancock Whitney Corp. It trades about -0.12 of its total potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.02 per unit of volatility. If you would invest  4,448  in Hancock Whitney Corp on March 8, 2024 and sell it today you would earn a total of  71.00  from holding Hancock Whitney Corp or generate 1.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  Hancock Whitney Corp

Salesforce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in July 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Hancock Whitney Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hancock Whitney Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hancock Whitney is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Salesforce and Hancock Whitney

The main advantage of trading using opposite Salesforce and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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 Salesforce 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 Global Correlations module to find global opportunities by holding instruments from different markets.