Correlation Between Hancock Whitney and Middlefield Banc
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Middlefield Banc 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 Middlefield Banc 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 Middlefield Banc, you can compare the effects of market volatilities on Hancock Whitney and Middlefield Banc 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 Middlefield Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Middlefield Banc.
Diversification Opportunities for Hancock Whitney and Middlefield Banc
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hancock and Middlefield is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Middlefield Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Middlefield Banc 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 Middlefield Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Middlefield Banc has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Middlefield Banc go up and down completely randomly.
Pair Corralation between Hancock Whitney and Middlefield Banc
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.13 times more return on investment than Middlefield Banc. However, Hancock Whitney is 1.13 times more volatile than Middlefield Banc. It trades about 0.16 of its potential returns per unit of risk. Middlefield Banc is currently generating about 0.0 per unit of risk. If you would invest 4,278 in Hancock Whitney Corp on December 29, 2023 and sell it today you would earn a total of 295.00 from holding Hancock Whitney Corp or generate 6.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hancock Whitney Corp vs. Middlefield Banc
Performance |
Timeline |
Hancock Whitney Corp |
Middlefield Banc |
Hancock Whitney and Middlefield Banc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hancock Whitney and Middlefield Banc
The main advantage of trading using opposite Hancock Whitney and Middlefield Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Middlefield Banc 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 Middlefield Banc will offset losses from the drop in Middlefield Banc's long position.Hancock Whitney vs. Merchants Bancorp | Hancock Whitney vs. Macatawa Bank | Hancock Whitney vs. Axos Financial | Hancock Whitney vs. Regions Financial |
Middlefield Banc vs. Merchants Bancorp | Middlefield Banc vs. Macatawa Bank | Middlefield Banc vs. Axos Financial | Middlefield Banc vs. Regions Financial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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