Correlation Between Hanesbrands and AB High
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and AB High 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 AB High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and AB High Dividend, you can compare the effects of market volatilities on Hanesbrands and AB High 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 AB High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and AB High.
Diversification Opportunities for Hanesbrands and AB High
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hanesbrands and HIDV is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and AB High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB High Dividend 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 AB High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB High Dividend has no effect on the direction of Hanesbrands i.e., Hanesbrands and AB High go up and down completely randomly.
Pair Corralation between Hanesbrands and AB High
Considering the 90-day investment horizon Hanesbrands is expected to generate 4.51 times more return on investment than AB High. However, Hanesbrands is 4.51 times more volatile than AB High Dividend. It trades about 0.04 of its potential returns per unit of risk. AB High Dividend is currently generating about 0.12 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 Together |
| Strength | Very Strong |
| Accuracy | 86.67% |
| Values | Daily Returns |
Hanesbrands vs. AB High Dividend
Performance |
| Timeline |
| Hanesbrands |
| AB High Dividend |
Hanesbrands and AB High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and AB High
The main advantage of trading using opposite Hanesbrands and AB High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, AB High 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 AB High will offset losses from the drop in AB High's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| AB High vs. AB Low Volatility | AB High vs. AB Disruptors ETF | AB High vs. AB Ultra Short | AB High vs. Ab Tax Aware Short |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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