Correlation Between Hanesbrands and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Amundi Index 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 Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Amundi Index Solutions, you can compare the effects of market volatilities on Hanesbrands and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Amundi Index.
Diversification Opportunities for Hanesbrands and Amundi Index
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and Amundi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Hanesbrands i.e., Hanesbrands and Amundi Index go up and down completely randomly.
Pair Corralation between Hanesbrands and Amundi Index
Considering the 90-day investment horizon Hanesbrands is expected to generate 6.27 times more return on investment than Amundi Index. However, Hanesbrands is 6.27 times more volatile than Amundi Index Solutions. It trades about 0.26 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.09 per unit of risk. If you would invest 712.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 179.00 from holding Hanesbrands or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hanesbrands vs. Amundi Index Solutions
Performance |
| Timeline |
| Hanesbrands |
| Amundi Index Solutions |
Hanesbrands and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Amundi Index
The main advantage of trading using opposite Hanesbrands and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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