Correlation Between Hanesbrands and Capitania Agro
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Capitania Agro 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 Capitania Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Capitania Agro Strategies, you can compare the effects of market volatilities on Hanesbrands and Capitania Agro 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 Capitania Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Capitania Agro.
Diversification Opportunities for Hanesbrands and Capitania Agro
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and Capitania is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Capitania Agro Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitania Agro Strategies 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 Capitania Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitania Agro Strategies has no effect on the direction of Hanesbrands i.e., Hanesbrands and Capitania Agro go up and down completely randomly.
Pair Corralation between Hanesbrands and Capitania Agro
Considering the 90-day investment horizon Hanesbrands is expected to generate 3.26 times more return on investment than Capitania Agro. However, Hanesbrands is 3.26 times more volatile than Capitania Agro Strategies. It trades about 0.11 of its potential returns per unit of risk. Capitania Agro Strategies is currently generating about -0.11 per unit of risk. If you would invest 386.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 484.00 from holding Hanesbrands or generate 125.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Capitania Agro Strategies
Performance |
| Timeline |
| Hanesbrands |
| Capitania Agro Strategies |
Hanesbrands and Capitania Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Capitania Agro
The main advantage of trading using opposite Hanesbrands and Capitania Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Capitania Agro 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 Capitania Agro will offset losses from the drop in Capitania Agro's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Capitania Agro vs. Fundo Investimento Imobiliario | Capitania Agro vs. Fras le SA | Capitania Agro vs. Western Digital | Capitania Agro vs. Clave Indices De |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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