Correlation Between Hanmi Financial and Capitol Federal
Can any of the company-specific risk be diversified away by investing in both Hanmi Financial and Capitol Federal 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 Hanmi Financial and Capitol Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanmi Financial and Capitol Federal Financial, you can compare the effects of market volatilities on Hanmi Financial and Capitol Federal 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 Capitol Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Financial and Capitol Federal.
Diversification Opportunities for Hanmi Financial and Capitol Federal
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanmi and Capitol is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Financial and Capitol Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitol Federal Financial 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 Capitol Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitol Federal Financial has no effect on the direction of Hanmi Financial i.e., Hanmi Financial and Capitol Federal go up and down completely randomly.
Pair Corralation between Hanmi Financial and Capitol Federal
Given the investment horizon of 90 days Hanmi Financial is expected to generate 1.11 times more return on investment than Capitol Federal. However, Hanmi Financial is 1.11 times more volatile than Capitol Federal Financial. It trades about 0.12 of its potential returns per unit of risk. Capitol Federal Financial is currently generating about 0.06 per unit of risk. If you would invest 2,336 in Hanmi Financial on August 15, 2025 and sell it today you would earn a total of 354.00 from holding Hanmi Financial or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Financial vs. Capitol Federal Financial
Performance |
| Timeline |
| Hanmi Financial |
| Capitol Federal Financial |
Hanmi Financial and Capitol Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Financial and Capitol Federal
The main advantage of trading using opposite Hanmi Financial and Capitol Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Financial position performs unexpectedly, Capitol Federal 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 Capitol Federal will offset losses from the drop in Capitol Federal's long position.| Hanmi Financial vs. Capitol Federal Financial | Hanmi Financial vs. MidWestOne Financial Group | Hanmi Financial vs. Central Pacific Financial | Hanmi Financial vs. Amalgamated Bank |
| Capitol Federal vs. Hanmi Financial | Capitol Federal vs. MidWestOne Financial Group | Capitol Federal vs. Central Pacific Financial | Capitol Federal vs. Heritage Financial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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