Correlation Between Hanesbrands and Hangzhou Gaoxin
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By analyzing existing cross correlation between Hanesbrands and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Hanesbrands and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Hangzhou Gaoxin.
Diversification Opportunities for Hanesbrands and Hangzhou Gaoxin
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Hangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Hanesbrands i.e., Hanesbrands and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Hanesbrands and Hangzhou Gaoxin
Considering the 90-day investment horizon Hanesbrands is expected to generate 0.96 times more return on investment than Hangzhou Gaoxin. However, Hanesbrands is 1.04 times less risky than Hangzhou Gaoxin. It trades about 0.13 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.09 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 | 96.8% |
| Values | Daily Returns |
Hanesbrands vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Hanesbrands |
| Hangzhou Gaoxin Rubber |
Hanesbrands and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Hangzhou Gaoxin
The main advantage of trading using opposite Hanesbrands and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Hangzhou Gaoxin vs. Hubei Xingfa Chemicals | Hangzhou Gaoxin vs. Miracll Chemicals Co | Hangzhou Gaoxin vs. Sichuan Hebang Biotechnology | Hangzhou Gaoxin vs. Guangdong Jinming Machinery |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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