Correlation Between Hanesbrands and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Guidestone Funds 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 Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Guidestone Funds International, you can compare the effects of market volatilities on Hanesbrands and Guidestone Funds 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 Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Guidestone Funds.
Diversification Opportunities for Hanesbrands and Guidestone Funds
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and GuideStone is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Guidestone Funds International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Funds Int 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 Guidestone Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Funds Int has no effect on the direction of Hanesbrands i.e., Hanesbrands and Guidestone Funds go up and down completely randomly.
Pair Corralation between Hanesbrands and Guidestone Funds
Considering the 90-day investment horizon Hanesbrands is expected to generate 4.43 times more return on investment than Guidestone Funds. However, Hanesbrands is 4.43 times more volatile than Guidestone Funds International. It trades about 0.04 of its potential returns per unit of risk. Guidestone Funds International is currently generating about 0.05 per unit of risk. If you would invest 637.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Hanesbrands or generate 36.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Guidestone Funds International
Performance |
| Timeline |
| Hanesbrands |
| Guidestone Funds Int |
Hanesbrands and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Guidestone Funds
The main advantage of trading using opposite Hanesbrands and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Guidestone Funds 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 Guidestone Funds will offset losses from the drop in Guidestone Funds' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Guidestone Funds vs. Goldman Sachs Clean | Guidestone Funds vs. Gamco Global Gold | Guidestone Funds vs. Vy Goldman Sachs | Guidestone Funds vs. Franklin Gold Precious |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |