Correlation Between Hanesbrands and IShares Public
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and IShares Public 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 IShares Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and iShares Public Limited, you can compare the effects of market volatilities on Hanesbrands and IShares Public 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 IShares Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and IShares Public.
Diversification Opportunities for Hanesbrands and IShares Public
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanesbrands and IShares is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and iShares Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Public 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 IShares Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Public has no effect on the direction of Hanesbrands i.e., Hanesbrands and IShares Public go up and down completely randomly.
Pair Corralation between Hanesbrands and IShares Public
Considering the 90-day investment horizon Hanesbrands is expected to generate 3.47 times more return on investment than IShares Public. However, Hanesbrands is 3.47 times more volatile than iShares Public Limited. It trades about 0.11 of its potential returns per unit of risk. iShares Public Limited is currently generating about 0.04 per unit of risk. If you would invest 400.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 466.00 from holding Hanesbrands or generate 116.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Hanesbrands vs. iShares Public Limited
Performance |
| Timeline |
| Hanesbrands |
| iShares Public |
Hanesbrands and IShares Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and IShares Public
The main advantage of trading using opposite Hanesbrands and IShares Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, IShares Public 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 IShares Public will offset losses from the drop in IShares Public's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| IShares Public vs. UBS Fund Solutions | IShares Public vs. Xtrackers II | IShares Public vs. Xtrackers Nikkei 225 | IShares Public vs. iShares VII PLC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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