Correlation Between Hancock Whitney and National Bank

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

Diversification Opportunities for Hancock Whitney and National Bank

0.92

Correlation Coefficient

Hancock Whitney  National Bank

Almost no diversification

The 3 months correlation between Hancock and National is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank Holdings has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and National Bank go up and down completely randomly.

Pair Corralation between Hancock Whitney and National Bank

Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.1 times more return on investment than National Bank. However, Hancock Whitney is 1.1 times more volatile than National Bank Holdings. It trades about 0.1 of its potential returns per unit of risk. National Bank Holdings is currently generating about 0.03 per unit of risk. If you would invest  5,334  in Hancock Whitney Corp on May 7, 2025 and sell it today you would earn a total of  555.00  from holding Hancock Whitney Corp or generate 10.4% return on investment over 90 days.

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

Hancock Whitney Corp  vs.  National Bank Holdings

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 8 (%) 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.

National Bank Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Bank Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, National Bank 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 National Bank

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

The idea behind Hancock Whitney Corp and National Bank Holdings 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.