Correlation Between Hanesbrands and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Kogeneracja 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 Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Kogeneracja SA, you can compare the effects of market volatilities on Hanesbrands and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Kogeneracja.
Diversification Opportunities for Hanesbrands and Kogeneracja
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Kogeneracja is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja SA 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Hanesbrands i.e., Hanesbrands and Kogeneracja go up and down completely randomly.
Pair Corralation between Hanesbrands and Kogeneracja
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.71 times less return on investment than Kogeneracja. In addition to that, Hanesbrands is 1.23 times more volatile than Kogeneracja SA. It trades about 0.04 of its total potential returns per unit of risk. Kogeneracja SA is currently generating about 0.07 per unit of volatility. If you would invest 2,480 in Kogeneracja SA on September 3, 2024 and sell it today you would earn a total of 3,500 from holding Kogeneracja SA or generate 141.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Kogeneracja SA
Performance |
| Timeline |
| Hanesbrands |
| Kogeneracja SA |
Hanesbrands and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Kogeneracja
The main advantage of trading using opposite Hanesbrands and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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