Correlation Between Hanmi Financial and Tytan Holdings
Can any of the company-specific risk be diversified away by investing in both Hanmi Financial and Tytan Holdings 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 Hanmi Financial and Tytan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanmi Financial and Tytan Holdings, you can compare the effects of market volatilities on Hanmi Financial and Tytan Holdings 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 Hanmi Financial with a short position of Tytan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and Tytan Holdings.
Diversification Opportunities for Hanmi Financial and Tytan Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanmi and Tytan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and Tytan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tytan Holdings and Hanmi 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 Hanmi Financial are associated (or correlated) with Tytan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tytan Holdings has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and Tytan Holdings go up and down completely randomly.
Pair Corralation between Hanmi Financial and Tytan Holdings
Given the investment horizon of 90 days Hanmi Financial is expected to generate 16.57 times less return on investment than Tytan Holdings. But when comparing it to its historical volatility, Hanmi Financial is 14.26 times less risky than Tytan Holdings. It trades about 0.07 of its potential returns per unit of risk. Tytan Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Tytan Holdings on December 10, 2024 and sell it today you would lose (0.11) from holding Tytan Holdings or give up 73.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.09% |
Values | Daily Returns |
Hanmi Financial vs. Tytan Holdings
Performance |
Timeline |
Hanmi Financial |
Tytan Holdings |
Hanmi Financial and Tytan Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and Tytan Holdings
The main advantage of trading using opposite Hanmi Financial and Tytan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, Tytan Holdings 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 Tytan Holdings will offset losses from the drop in Tytan Holdings' long position.Hanmi Financial vs. OP Bancorp | Hanmi Financial vs. PCB Bancorp | Hanmi Financial vs. Heritage Commerce Corp | Hanmi Financial vs. Riverview 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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