Correlation Between Hanesbrands and Biostar Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Biostar Pharmaceuticals 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 Biostar Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Biostar Pharmaceuticals, you can compare the effects of market volatilities on Hanesbrands and Biostar Pharmaceuticals 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 Biostar Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Biostar Pharmaceuticals.
Diversification Opportunities for Hanesbrands and Biostar Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and Biostar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Biostar Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostar Pharmaceuticals 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 Biostar Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biostar Pharmaceuticals has no effect on the direction of Hanesbrands i.e., Hanesbrands and Biostar Pharmaceuticals go up and down completely randomly.
Pair Corralation between Hanesbrands and Biostar Pharmaceuticals
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 | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hanesbrands vs. Biostar Pharmaceuticals
Performance |
| Timeline |
| Hanesbrands |
| Biostar Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Biostar Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Biostar Pharmaceuticals
The main advantage of trading using opposite Hanesbrands and Biostar Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Biostar Pharmaceuticals 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 Biostar Pharmaceuticals will offset losses from the drop in Biostar Pharmaceuticals' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Biostar Pharmaceuticals vs. Lifecore Biomedical | Biostar Pharmaceuticals vs. Kamada | Biostar Pharmaceuticals vs. Shuttle Pharmaceuticals | Biostar Pharmaceuticals vs. Cumberland Pharmaceuticals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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