19.64 -0.2 (-1.01%) Sell

Want to invest in HAFC? Avoid as it has destroyed investor wealth

13 min read

HANMI FINANCIAL CORP has destroyed investor wealth on Friday. It returned -1.01% to close at 19.64. On a day when the overall market breadth was 35%, it closed higher than 73% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing HAFC]

HAFC showed a strong down trend over the last 3 months. During this period HAFC returned -24.02% and saw a maximum drawdown of -29.69%. There was a short signal during this period which returned +24.02%.


HAFC has been underperforming the SP500 index in recent time, after having outperformed till 4 Jan, 2017. Over the last 2 years 11 months and 10 days, HAFC underperformed the SP500 index on 49% days. Which indicates that on days HAFC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

HAFC returned losses on 58% days in the last three months. During this time, it delivered on average -0.4% per day. It delivered it's worst daily return of -15.05%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 16 Oct, 2018 and went on till 22 Oct, 2018. The trend delivered -7.93% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 31 Oct, 2018. This bullish trend delivered +13.67% to investors.

On monthly basis, HAFC delivered losses in more months over the last year, than profits. HAFC delivered profits less regularly than SP500 index. HAFC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.44% compared to -7.28% returned by SP500 index in Oct 2018. HAFC and SP500 index, both had periods of 2 consecutive losing months.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

HAFC is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in HAFC's volatility from 28 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HAFC has significant positive skewness in it's return distribution. This indicates that investors can expect HAFC to recover from drawdowns quickly. Which makes HAFC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than HAFC. Therefore, SP500 must receive a lower allocation than HAFC in your portfolio. SP500 index usually has shorter drawdown period than HAFC.

On a general note (since you are interested in HAFC), AMZN is a large cap that deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter