Correlation Between Hanesbrands and Zhejiang Transfar
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By analyzing existing cross correlation between Hanesbrands and Zhejiang Transfar Co, you can compare the effects of market volatilities on Hanesbrands and Zhejiang Transfar 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 Hanesbrands with a short position of Zhejiang Transfar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Zhejiang Transfar.
Diversification Opportunities for Hanesbrands and Zhejiang Transfar
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hanesbrands and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Zhejiang Transfar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Transfar and Hanesbrands 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 Hanesbrands are associated (or correlated) with Zhejiang Transfar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Transfar has no effect on the direction of Hanesbrands i.e., Hanesbrands and Zhejiang Transfar go up and down completely randomly.
Pair Corralation between Hanesbrands and Zhejiang Transfar
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.83 times more return on investment than Zhejiang Transfar. However, Hanesbrands is 1.83 times more volatile than Zhejiang Transfar Co. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Transfar Co is currently generating about 0.0 per unit of risk. If you would invest 629.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 262.00 from holding Hanesbrands or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.16% |
| Values | Daily Returns |
Hanesbrands vs. Zhejiang Transfar Co
Performance |
| Timeline |
| Hanesbrands |
| Zhejiang Transfar |
Hanesbrands and Zhejiang Transfar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Zhejiang Transfar
The main advantage of trading using opposite Hanesbrands and Zhejiang Transfar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Zhejiang Transfar 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 Zhejiang Transfar will offset losses from the drop in Zhejiang Transfar's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Zhejiang Transfar vs. Iat Automobile Technology | Zhejiang Transfar vs. Chahua Modern Housewares | Zhejiang Transfar vs. Haima Automobile Group | Zhejiang Transfar vs. Shenzhen Kexin Communication |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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