Correlation Between Hancock Whitney and Hope Bancorp

Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and Hope Bancorp 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 Hope Bancorp 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 Hope Bancorp, you can compare the effects of market volatilities on Hancock Whitney and Hope Bancorp 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 Hope Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and Hope Bancorp.

Diversification Opportunities for Hancock Whitney and Hope Bancorp

0.78

Correlation Coefficient

Hancock Whitney  Hope Bancorp

Poor diversification

The 3 months correlation between Hancock and Hope is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and Hope Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hope Bancorp 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 Hope Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hope Bancorp has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and Hope Bancorp go up and down completely randomly.

Pair Corralation between Hancock Whitney and Hope Bancorp

Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 0.95 times more return on investment than Hope Bancorp. However, Hancock Whitney Corp is 1.06 times less risky than Hope Bancorp. It trades about 0.09 of its potential returns per unit of risk. Hope Bancorp is currently generating about 0.0 per unit of risk. If you would invest  5,293  in Hancock Whitney Corp on May 6, 2025 and sell it today you would earn a total of  471.00  from holding Hancock Whitney Corp or generate 8.9% return on investment over 90 days.

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

Hancock Whitney Corp  vs.  Hope Bancorp

Hancock Whitney Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hancock Whitney Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Hancock Whitney may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Hope Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hope Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Hope Bancorp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hancock Whitney and Hope Bancorp

The main advantage of trading using opposite Hancock Whitney and Hope Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, Hope Bancorp 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 Hope Bancorp will offset losses from the drop in Hope Bancorp's long position.

The idea behind Hancock Whitney Corp and Hope Bancorp 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.