Correlation Between WVS Financial and Hancock Whitney

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

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

Diversification Opportunities for WVS Financial and Hancock Whitney

-0.48

Correlation Coefficient

WVS Financial  Hancock Whitney

Very good diversification

The 3 months correlation between WVS and Hancock is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding WVS Financial Corp and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and WVS Financial 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 WVS Financial Corp 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 WVS Financial i.e., WVS Financial and Hancock Whitney go up and down completely randomly.

Pair Corralation between WVS Financial and Hancock Whitney

If you would invest  2,514  in Hancock Whitney on July 18, 2024 and sell it today you would earn a total of  11.00  from holding Hancock Whitney or generate 0.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.35%
Values	Daily Returns

WVS Financial Corp  vs.  Hancock Whitney

WVS Financial Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Hancock Whitney

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hancock Whitney are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Hancock Whitney may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Pair Trading with WVS Financial and Hancock Whitney

The main advantage of trading using opposite WVS Financial and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WVS Financial 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 WVS Financial Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.