Correlation Between Hanmi Financial and RBACN

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

By analyzing existing cross correlation between Hanmi Financial and RBACN 775 15 MAR 31, you can compare the effects of market volatilities on Hanmi Financial and RBACN 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 RBACN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and RBACN.

Diversification Opportunities for Hanmi Financial and RBACN

-0.53

Correlation Coefficient

Hanmi Financial  RBACN

Excellent diversification

The 3 months correlation between Hanmi and RBACN is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and RBACN 775 15 MAR 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBACN 775 15 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 RBACN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBACN 775 15 has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and RBACN go up and down completely randomly.

Pair Corralation between Hanmi Financial and RBACN

Given the investment horizon of 90 days Hanmi Financial is expected to under-perform the RBACN. In addition to that, Hanmi Financial is 10.58 times more volatile than RBACN 775 15 MAR 31. It trades about -0.25 of its total potential returns per unit of risk. RBACN 775 15 MAR 31 is currently generating about -0.22 per unit of volatility. If you would invest  10,552  in RBACN 775 15 MAR 31 on September 27, 2024 and sell it today you would lose (89.00) from holding RBACN 775 15 MAR 31 or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.91%
Values	Daily Returns

Hanmi Financial  vs.  RBACN 775 15 MAR 31

Hanmi Financial

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hanmi Financial are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Hanmi Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.

RBACN 775 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RBACN 775 15 MAR 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, RBACN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hanmi Financial and RBACN

The main advantage of trading using opposite Hanmi Financial and RBACN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, RBACN 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 RBACN will offset losses from the drop in RBACN's long position.

The idea behind Hanmi Financial and RBACN 775 15 MAR 31 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.