Correlation Between Hanesbrands and Guardian Capital
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Guardian Capital 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 Guardian Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Guardian Capital Group, you can compare the effects of market volatilities on Hanesbrands and Guardian Capital 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 Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Guardian Capital.
Diversification Opportunities for Hanesbrands and Guardian Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanesbrands and Guardian is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital 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 Guardian Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Capital has no effect on the direction of Hanesbrands i.e., Hanesbrands and Guardian Capital go up and down completely randomly.
Pair Corralation between Hanesbrands and Guardian Capital
Considering the 90-day investment horizon Hanesbrands is expected to generate 2.29 times more return on investment than Guardian Capital. However, Hanesbrands is 2.29 times more volatile than Guardian Capital Group. It trades about 0.11 of its potential returns per unit of risk. Guardian Capital Group is currently generating about 0.0 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Guardian Capital Group
Performance |
| Timeline |
| Hanesbrands |
| Guardian Capital |
Hanesbrands and Guardian Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Guardian Capital
The main advantage of trading using opposite Hanesbrands and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Guardian Capital 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 Guardian Capital will offset losses from the drop in Guardian Capital's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Guardian Capital vs. Guardian Capital Group | Guardian Capital vs. Andrew Peller Limited | Guardian Capital vs. K Bro Linen | Guardian Capital vs. AGF Management Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |