Correlation Between Hanesbrands and ICICI Prudential

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Can any of the company-specific risk be diversified away by investing in both Hanesbrands and ICICI Prudential 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 ICICI Prudential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and ICICI Prudential Amc, you can compare the effects of market volatilities on Hanesbrands and ICICI Prudential 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 ICICI Prudential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and ICICI Prudential.

Diversification Opportunities for Hanesbrands and ICICI Prudential

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hanesbrands and ICICI is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and ICICI Prudential Amc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Prudential Amc 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 ICICI Prudential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Prudential Amc has no effect on the direction of Hanesbrands i.e., Hanesbrands and ICICI Prudential go up and down completely randomly.

Pair Corralation between Hanesbrands and ICICI Prudential

If you would invest  712.00  in Hanesbrands on September 3, 2024 and sell it today you would earn a total of  158.00  from holding Hanesbrands or generate 22.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy95.0%
ValuesDaily Returns

Hanesbrands  vs.  ICICI Prudential Amc

 Performance 
       Timeline  
Hanesbrands 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Hanesbrands are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting fundamental drivers, Hanesbrands demonstrated solid returns over the last few months and may actually be approaching a breakup point.
ICICI Prudential Amc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ICICI Prudential Amc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Hanesbrands and ICICI Prudential Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hanesbrands and ICICI Prudential

The main advantage of trading using opposite Hanesbrands and ICICI Prudential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, ICICI Prudential 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 ICICI Prudential will offset losses from the drop in ICICI Prudential's long position.
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The idea behind Hanesbrands and ICICI Prudential Amc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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