Correlation Between Hancock Whitney and MT Bank
Can any of the company-specific risk be diversified away by investing in both Hancock Whitney and MT 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 MT 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 MT Bank, you can compare the effects of market volatilities on Hancock Whitney and MT 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 MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancock Whitney and MT Bank.
Diversification Opportunities for Hancock Whitney and MT Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hancock and MTB is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hancock Whitney Corp and MT Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank has no effect on the direction of Hancock Whitney i.e., Hancock Whitney and MT Bank go up and down completely randomly.
Pair Corralation between Hancock Whitney and MT Bank
Considering the 90-day investment horizon Hancock Whitney Corp is expected to generate 1.2 times more return on investment than MT Bank. However, Hancock Whitney is 1.2 times more volatile than MT Bank. It trades about 0.06 of its potential returns per unit of risk. MT Bank is currently generating about -0.02 per unit of risk. If you would invest 5,953 in Hancock Whitney Corp on July 7, 2025 and sell it today you would earn a total of 297.00 from holding Hancock Whitney Corp or generate 4.99% 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. MT Bank
Performance |
| Timeline |
| Hancock Whitney Corp |
| MT Bank |
Hancock Whitney and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancock Whitney and MT Bank
The main advantage of trading using opposite Hancock Whitney and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancock Whitney position performs unexpectedly, MT 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 MT Bank will offset losses from the drop in MT Bank's long position.| Hancock Whitney vs. Cadence Bancorp | Hancock Whitney vs. Trustmark | Hancock Whitney vs. Ameris Bancorp | Hancock Whitney vs. HarborOne Bancorp |
| MT Bank vs. PNC Financial Services | MT Bank vs. Citizens Financial Group, | MT Bank vs. Regions Financial | MT Bank vs. Fifth Third Bancorp |
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 Stocks Directory module to find actively traded stocks across global markets.
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