Correlation Between Hanesbrands and Absa Multi
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By analyzing existing cross correlation between Hanesbrands and Absa Multi Managed, you can compare the effects of market volatilities on Hanesbrands and Absa Multi 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 Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Absa Multi.
Diversification Opportunities for Hanesbrands and Absa Multi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Absa is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed 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 Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Hanesbrands i.e., Hanesbrands and Absa Multi go up and down completely randomly.
Pair Corralation between Hanesbrands and Absa Multi
Considering the 90-day investment horizon Hanesbrands is expected to generate 11.45 times more return on investment than Absa Multi. However, Hanesbrands is 11.45 times more volatile than Absa Multi Managed. It trades about 0.13 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.21 per unit of risk. If you would invest 518.00 in Hanesbrands on September 5, 2024 and sell it today you would earn a total of 349.00 from holding Hanesbrands or generate 67.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Absa Multi Managed
Performance |
| Timeline |
| Hanesbrands |
| Absa Multi Managed |
Hanesbrands and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Absa Multi
The main advantage of trading using opposite Hanesbrands and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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