Correlation Between Hanesbrands and Dook Media
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By analyzing existing cross correlation between Hanesbrands and Dook Media Group, you can compare the effects of market volatilities on Hanesbrands and Dook Media 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 Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Dook Media.
Diversification Opportunities for Hanesbrands and Dook Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Dook is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group 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 Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Hanesbrands i.e., Hanesbrands and Dook Media go up and down completely randomly.
Pair Corralation between Hanesbrands and Dook Media
Considering the 90-day investment horizon Hanesbrands is expected to generate 0.82 times more return on investment than Dook Media. However, Hanesbrands is 1.22 times less risky than Dook Media. It trades about 0.04 of its potential returns per unit of risk. Dook Media Group is currently generating about 0.03 per unit of risk. If you would invest 637.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Hanesbrands or generate 36.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Hanesbrands vs. Dook Media Group
Performance |
| Timeline |
| Hanesbrands |
| Dook Media Group |
Hanesbrands and Dook Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Dook Media
The main advantage of trading using opposite Hanesbrands and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Dook Media vs. Gansu Jiu Steel | Dook Media vs. Ming Yang Smart | Dook Media vs. Aba Chemicals Corp | Dook Media vs. Loctek Ergonomic Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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