Correlation Between Hanesbrands and N Citron
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and N Citron 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 N Citron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and N Citron, you can compare the effects of market volatilities on Hanesbrands and N Citron 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 N Citron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and N Citron.
Diversification Opportunities for Hanesbrands and N Citron
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and 101400 is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and N Citron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Citron 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 N Citron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Citron has no effect on the direction of Hanesbrands i.e., Hanesbrands and N Citron go up and down completely randomly.
Pair Corralation between Hanesbrands and N Citron
Considering the 90-day investment horizon Hanesbrands is expected to generate 2.89 times more return on investment than N Citron. However, Hanesbrands is 2.89 times more volatile than N Citron. It trades about 0.24 of its potential returns per unit of risk. N Citron is currently generating about -0.09 per unit of risk. If you would invest 712.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 158.00 from holding Hanesbrands or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hanesbrands vs. N Citron
Performance |
| Timeline |
| Hanesbrands |
| N Citron |
Hanesbrands and N Citron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and N Citron
The main advantage of trading using opposite Hanesbrands and N Citron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, N Citron 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 N Citron will offset losses from the drop in N Citron's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| N Citron vs. Dongsin Engineering Construction | N Citron vs. Doosan Fuel Cell | N Citron vs. Daishin Balance 1 | N Citron vs. Total Soft Bank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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