Correlation Between Hanmi Financial and NEWMONT
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By analyzing existing cross correlation between Hanmi Financial and NEWMONT MNG P, you can compare the effects of market volatilities on Hanmi Financial and NEWMONT 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 NEWMONT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and NEWMONT.
Diversification Opportunities for Hanmi Financial and NEWMONT
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanmi and NEWMONT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and NEWMONT MNG P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT MNG P 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 NEWMONT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWMONT MNG P has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and NEWMONT go up and down completely randomly.
Pair Corralation between Hanmi Financial and NEWMONT
Given the investment horizon of 90 days Hanmi Financial is expected to generate 2.28 times more return on investment than NEWMONT. However, Hanmi Financial is 2.28 times more volatile than NEWMONT MNG P. It trades about -0.02 of its potential returns per unit of risk. NEWMONT MNG P is currently generating about -0.07 per unit of risk. If you would invest 2,322 in Hanmi Financial on December 29, 2024 and sell it today you would lose (64.00) from holding Hanmi Financial or give up 2.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 86.89% |
Values | Daily Returns |
Hanmi Financial vs. NEWMONT MNG P
Performance |
Timeline |
Hanmi Financial |
NEWMONT MNG P |
Hanmi Financial and NEWMONT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and NEWMONT
The main advantage of trading using opposite Hanmi Financial and NEWMONT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, NEWMONT 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 NEWMONT will offset losses from the drop in NEWMONT's long position.Hanmi Financial vs. Home Bancorp | Hanmi Financial vs. Rhinebeck Bancorp | Hanmi Financial vs. LINKBANCORP | Hanmi Financial vs. Magyar Bancorp |
NEWMONT vs. Bankwell Financial Group | NEWMONT vs. Griffon | NEWMONT vs. IPG Photonics | NEWMONT vs. Hudson Technologies |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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