Correlation Between Hanmi Financial and NORFOLK
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By analyzing existing cross correlation between Hanmi Financial and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Hanmi Financial and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and NORFOLK.
Diversification Opportunities for Hanmi Financial and NORFOLK
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanmi and NORFOLK is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and NORFOLK go up and down completely randomly.
Pair Corralation between Hanmi Financial and NORFOLK
Given the investment horizon of 90 days Hanmi Financial is expected to under-perform the NORFOLK. In addition to that, Hanmi Financial is 1.59 times more volatile than NORFOLK SOUTHN P. It trades about -0.26 of its total potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about -0.18 per unit of volatility. If you would invest 8,364 in NORFOLK SOUTHN P on September 23, 2024 and sell it today you would lose (299.00) from holding NORFOLK SOUTHN P or give up 3.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 71.43% |
Values | Daily Returns |
Hanmi Financial vs. NORFOLK SOUTHN P
Performance |
Timeline |
Hanmi Financial |
NORFOLK SOUTHN P |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanmi Financial and NORFOLK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and NORFOLK
The main advantage of trading using opposite Hanmi Financial and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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