Correlation Between Hanesbrands and Huatai Securities
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By analyzing existing cross correlation between Hanesbrands and Huatai Securities Co, you can compare the effects of market volatilities on Hanesbrands and Huatai Securities 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 Huatai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Huatai Securities.
Diversification Opportunities for Hanesbrands and Huatai Securities
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Huatai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Huatai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatai Securities 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 Huatai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatai Securities has no effect on the direction of Hanesbrands i.e., Hanesbrands and Huatai Securities go up and down completely randomly.
Pair Corralation between Hanesbrands and Huatai Securities
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.35 times more return on investment than Huatai Securities. However, Hanesbrands is 1.35 times more volatile than Huatai Securities Co. It trades about 0.14 of its potential returns per unit of risk. Huatai Securities Co is currently generating about -0.17 per unit of risk. If you would invest 790.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Hanesbrands or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hanesbrands vs. Huatai Securities Co
Performance |
| Timeline |
| Hanesbrands |
| Huatai Securities |
Hanesbrands and Huatai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Huatai Securities
The main advantage of trading using opposite Hanesbrands and Huatai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Huatai Securities 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 Huatai Securities will offset losses from the drop in Huatai Securities' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Huatai Securities vs. Shanghai Yanpu Metal | Huatai Securities vs. Huaxia Fund Management | Huatai Securities vs. Shandong Mining Machinery | Huatai Securities vs. Dalian Thermal Power |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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