Correlation Between Hanmi Financial and BAKER
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By analyzing existing cross correlation between Hanmi Financial and BAKER HUGHES A, you can compare the effects of market volatilities on Hanmi Financial and BAKER 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 BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and BAKER.
Diversification Opportunities for Hanmi Financial and BAKER
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanmi and BAKER is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A 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 BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and BAKER go up and down completely randomly.
Pair Corralation between Hanmi Financial and BAKER
Given the investment horizon of 90 days Hanmi Financial is expected to under-perform the BAKER. In addition to that, Hanmi Financial is 4.43 times more volatile than BAKER HUGHES A. It trades about -0.29 of its total potential returns per unit of risk. BAKER HUGHES A is currently generating about -0.23 per unit of volatility. If you would invest 9,639 in BAKER HUGHES A on September 24, 2024 and sell it today you would lose (210.00) from holding BAKER HUGHES A or give up 2.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hanmi Financial vs. BAKER HUGHES A
Performance |
Timeline |
Hanmi Financial |
BAKER HUGHES A |
Hanmi Financial and BAKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and BAKER
The main advantage of trading using opposite Hanmi Financial and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.Hanmi Financial vs. OP Bancorp | Hanmi Financial vs. PCB Bancorp | Hanmi Financial vs. Heritage Commerce Corp | Hanmi Financial vs. Riverview Bancorp |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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