Correlation Between Hanesbrands and KHVATEC CoLtd
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and KHVATEC CoLtd 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 Hanesbrands and KHVATEC CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and KHVATEC CoLtd, you can compare the effects of market volatilities on Hanesbrands and KHVATEC CoLtd 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 KHVATEC CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and KHVATEC CoLtd.
Diversification Opportunities for Hanesbrands and KHVATEC CoLtd
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and KHVATEC is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and KHVATEC CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KHVATEC CoLtd 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 KHVATEC CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KHVATEC CoLtd has no effect on the direction of Hanesbrands i.e., Hanesbrands and KHVATEC CoLtd go up and down completely randomly.
Pair Corralation between Hanesbrands and KHVATEC CoLtd
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.45 times more return on investment than KHVATEC CoLtd. However, Hanesbrands is 1.45 times more volatile than KHVATEC CoLtd. It trades about 0.07 of its potential returns per unit of risk. KHVATEC CoLtd is currently generating about -0.09 per unit of risk. If you would invest 469.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 422.00 from holding Hanesbrands or generate 89.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.32% |
| Values | Daily Returns |
Hanesbrands vs. KHVATEC CoLtd
Performance |
| Timeline |
| Hanesbrands |
| KHVATEC CoLtd |
Hanesbrands and KHVATEC CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and KHVATEC CoLtd
The main advantage of trading using opposite Hanesbrands and KHVATEC CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, KHVATEC CoLtd 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 KHVATEC CoLtd will offset losses from the drop in KHVATEC CoLtd's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| KHVATEC CoLtd vs. Seoul Semiconductor Co | KHVATEC CoLtd vs. Interflex Co | KHVATEC CoLtd vs. Intops Co | KHVATEC CoLtd vs. Kmw Inc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |