Correlation Between Hanesbrands and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Fidelity International 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 Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Fidelity International Enhanced, you can compare the effects of market volatilities on Hanesbrands and Fidelity International 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 Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Fidelity International.
Diversification Opportunities for Hanesbrands and Fidelity International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and Fidelity is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Fidelity International Enhance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Hanesbrands i.e., Hanesbrands and Fidelity International go up and down completely randomly.
Pair Corralation between Hanesbrands and Fidelity International
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 | 4.76% |
| Values | Daily Returns |
Hanesbrands vs. Fidelity International Enhance
Performance |
| Timeline |
| Hanesbrands |
| Fidelity International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Fidelity International
The main advantage of trading using opposite Hanesbrands and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Fidelity International 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 Fidelity International will offset losses from the drop in Fidelity International's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Fidelity International vs. Fidelity International Value | Fidelity International vs. Fidelity Total International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |