Correlation Between Hanmi Financial and IAGLN
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By analyzing existing cross correlation between Hanmi Financial and IAGLN 425 15 NOV 32, you can compare the effects of market volatilities on Hanmi Financial and IAGLN 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 IAGLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and IAGLN.
Diversification Opportunities for Hanmi Financial and IAGLN
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanmi and IAGLN is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and IAGLN 425 15 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAGLN 425 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 IAGLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAGLN 425 15 has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and IAGLN go up and down completely randomly.
Pair Corralation between Hanmi Financial and IAGLN
Given the investment horizon of 90 days Hanmi Financial is expected to generate 1.43 times more return on investment than IAGLN. However, Hanmi Financial is 1.43 times more volatile than IAGLN 425 15 NOV 32. It trades about 0.13 of its potential returns per unit of risk. IAGLN 425 15 NOV 32 is currently generating about -0.05 per unit of risk. If you would invest 1,898 in Hanmi Financial on September 23, 2024 and sell it today you would earn a total of 466.00 from holding Hanmi Financial or generate 24.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 33.85% |
Values | Daily Returns |
Hanmi Financial vs. IAGLN 425 15 NOV 32
Performance |
Timeline |
Hanmi Financial |
IAGLN 425 15 |
Hanmi Financial and IAGLN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and IAGLN
The main advantage of trading using opposite Hanmi Financial and IAGLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, IAGLN 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 IAGLN will offset losses from the drop in IAGLN'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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