Correlation Between Cullman Bancorp and Hanmi Financial
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Hanmi Financial 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 Cullman Bancorp and Hanmi Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Hanmi Financial, you can compare the effects of market volatilities on Cullman Bancorp and Hanmi Financial 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 Cullman Bancorp with a short position of Hanmi Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Hanmi Financial.
Diversification Opportunities for Cullman Bancorp and Hanmi Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cullman and Hanmi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Hanmi Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Financial and Cullman Bancorp 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 Cullman Bancorp are associated (or correlated) with Hanmi Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanmi Financial has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Hanmi Financial go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Hanmi Financial
If you would invest 2,267 in Hanmi Financial on September 2, 2024 and sell it today you would earn a total of 378.00 from holding Hanmi Financial or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cullman Bancorp vs. Hanmi Financial
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hanmi Financial |
Cullman Bancorp and Hanmi Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Hanmi Financial
The main advantage of trading using opposite Cullman Bancorp and Hanmi Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Hanmi Financial 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 Hanmi Financial will offset losses from the drop in Hanmi Financial's long position.| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar Bancorp |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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