Correlation Between Amer Sports, and Hanesbrands
Can any of the company-specific risk be diversified away by investing in both Amer Sports, and Hanesbrands 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 Amer Sports, and Hanesbrands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Sports, and Hanesbrands, you can compare the effects of market volatilities on Amer Sports, and Hanesbrands 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 Amer Sports, with a short position of Hanesbrands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Hanesbrands.
Diversification Opportunities for Amer Sports, and Hanesbrands
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amer and Hanesbrands is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Hanesbrands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanesbrands and Amer Sports, 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 Amer Sports, are associated (or correlated) with Hanesbrands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanesbrands has no effect on the direction of Amer Sports, i.e., Amer Sports, and Hanesbrands go up and down completely randomly.
Pair Corralation between Amer Sports, and Hanesbrands
Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 0.87 times more return on investment than Hanesbrands. However, Amer Sports, is 1.14 times less risky than Hanesbrands. It trades about 0.47 of its potential returns per unit of risk. Hanesbrands is currently generating about 0.22 per unit of risk. If you would invest 1,762 in Amer Sports, on August 31, 2024 and sell it today you would earn a total of 825.00 from holding Amer Sports, or generate 46.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Sports, vs. Hanesbrands
Performance |
| Timeline |
| Amer Sports, |
| Hanesbrands |
Amer Sports, and Hanesbrands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Sports, and Hanesbrands
The main advantage of trading using opposite Amer Sports, and Hanesbrands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Sports, position performs unexpectedly, Hanesbrands 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 Hanesbrands will offset losses from the drop in Hanesbrands' long position.| Amer Sports, vs. National CineMedia | Amer Sports, vs. 51Talk Online Education | Amer Sports, vs. Triton International Limited | Amer Sports, vs. WiMi Hologram Cloud |
| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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