Correlation Between Hanesbrands and Janus Global
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Janus Global 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 Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Janus Global Bond, you can compare the effects of market volatilities on Hanesbrands and Janus Global 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 Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Janus Global.
Diversification Opportunities for Hanesbrands and Janus Global
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanesbrands and Janus is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Janus Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Bond 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Bond has no effect on the direction of Hanesbrands i.e., Hanesbrands and Janus Global go up and down completely randomly.
Pair Corralation between Hanesbrands and Janus Global
Considering the 90-day investment horizon Hanesbrands is expected to generate 6.83 times more return on investment than Janus Global. However, Hanesbrands is 6.83 times more volatile than Janus Global Bond. It trades about 0.04 of its potential returns per unit of risk. Janus Global Bond is currently generating about -0.02 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 | 30.91% |
| Values | Daily Returns |
Hanesbrands vs. Janus Global Bond
Performance |
| Timeline |
| Hanesbrands |
| Janus Global Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Janus Global
The main advantage of trading using opposite Hanesbrands and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Janus Global 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 Janus Global will offset losses from the drop in Janus Global's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Janus Global vs. Versatile Bond Portfolio | Janus Global vs. Lind Capital Partners | Janus Global vs. Artisan High Income | Janus Global vs. California Bond Fund |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |