Correlation Between Hanesbrands and Independence Holding
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Independence Holding 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 Independence Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Independence Holding, you can compare the effects of market volatilities on Hanesbrands and Independence Holding 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 Independence Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Independence Holding.
Diversification Opportunities for Hanesbrands and Independence Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and Independence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Independence Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Holding 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 Independence Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Holding has no effect on the direction of Hanesbrands i.e., Hanesbrands and Independence Holding go up and down completely randomly.
Pair Corralation between Hanesbrands and Independence Holding
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hanesbrands vs. Independence Holding
Performance |
| Timeline |
| Hanesbrands |
| Independence Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Independence Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Independence Holding
The main advantage of trading using opposite Hanesbrands and Independence Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Independence Holding 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 Independence Holding will offset losses from the drop in Independence Holding's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Independence Holding vs. Yuexiu Transport Infrastructure | Independence Holding vs. TFI International | Independence Holding vs. Aldel Financial II | Independence Holding vs. Atmos Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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