Correlation Between Hanesbrands and Klaveness Combination
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Klaveness Combination 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 Klaveness Combination into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Klaveness Combination Carriers, you can compare the effects of market volatilities on Hanesbrands and Klaveness Combination 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 Klaveness Combination. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Klaveness Combination.
Diversification Opportunities for Hanesbrands and Klaveness Combination
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanesbrands and Klaveness is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Klaveness Combination Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaveness Combination 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 Klaveness Combination. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaveness Combination has no effect on the direction of Hanesbrands i.e., Hanesbrands and Klaveness Combination go up and down completely randomly.
Pair Corralation between Hanesbrands and Klaveness Combination
Considering the 90-day investment horizon Hanesbrands is expected to generate 2.11 times more return on investment than Klaveness Combination. However, Hanesbrands is 2.11 times more volatile than Klaveness Combination Carriers. It trades about 0.24 of its potential returns per unit of risk. Klaveness Combination Carriers is currently generating about -0.02 per unit of risk. 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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hanesbrands vs. Klaveness Combination Carriers
Performance |
| Timeline |
| Hanesbrands |
| Klaveness Combination |
Hanesbrands and Klaveness Combination Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Klaveness Combination
The main advantage of trading using opposite Hanesbrands and Klaveness Combination positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Klaveness Combination 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 Klaveness Combination will offset losses from the drop in Klaveness Combination's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Klaveness Combination vs. Grong Sparebank | Klaveness Combination vs. Awilco Drilling PLC | Klaveness Combination vs. Lea Bank ASA | Klaveness Combination vs. Polaris Media |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |