Correlation Between Hanmi Financial and Crown
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By analyzing existing cross correlation between Hanmi Financial and Crown Cork 7375, you can compare the effects of market volatilities on Hanmi Financial and Crown 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 Crown. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and Crown.
Diversification Opportunities for Hanmi Financial and Crown
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanmi and Crown is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and Crown Cork 7375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Cork 7375 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 Crown. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Cork 7375 has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and Crown go up and down completely randomly.
Pair Corralation between Hanmi Financial and Crown
Given the investment horizon of 90 days Hanmi Financial is expected to under-perform the Crown. In addition to that, Hanmi Financial is 3.41 times more volatile than Crown Cork 7375. It trades about -0.26 of its total potential returns per unit of risk. Crown Cork 7375 is currently generating about -0.03 per unit of volatility. If you would invest 10,454 in Crown Cork 7375 on September 23, 2024 and sell it today you would lose (49.00) from holding Crown Cork 7375 or give up 0.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Hanmi Financial vs. Crown Cork 7375
Performance |
Timeline |
Hanmi Financial |
Crown Cork 7375 |
Hanmi Financial and Crown Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and Crown
The main advantage of trading using opposite Hanmi Financial and Crown positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, Crown 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 Crown will offset losses from the drop in Crown's 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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