Correlation Between Hanmi Financial and WPLAU
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hanmi Financial and WPLAU 37 15 SEP 26, you can compare the effects of market volatilities on Hanmi Financial and WPLAU 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 WPLAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and WPLAU.
Diversification Opportunities for Hanmi Financial and WPLAU
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hanmi and WPLAU is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and WPLAU 37 15 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPLAU 37 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 WPLAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPLAU 37 15 has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and WPLAU go up and down completely randomly.
Pair Corralation between Hanmi Financial and WPLAU
Given the investment horizon of 90 days Hanmi Financial is expected to under-perform the WPLAU. In addition to that, Hanmi Financial is 2.2 times more volatile than WPLAU 37 15 SEP 26. It trades about -0.29 of its total potential returns per unit of risk. WPLAU 37 15 SEP 26 is currently generating about -0.28 per unit of volatility. If you would invest 9,772 in WPLAU 37 15 SEP 26 on September 24, 2024 and sell it today you would lose (235.00) from holding WPLAU 37 15 SEP 26 or give up 2.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 45.0% |
Values | Daily Returns |
Hanmi Financial vs. WPLAU 37 15 SEP 26
Performance |
Timeline |
Hanmi Financial |
WPLAU 37 15 |
Hanmi Financial and WPLAU Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Financial and WPLAU
The main advantage of trading using opposite Hanmi Financial and WPLAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, WPLAU 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 WPLAU will offset losses from the drop in WPLAU'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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |