Correlation Between Hanesbrands and Knightswan Acquisition
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Knightswan Acquisition 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 Knightswan Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Knightswan Acquisition Corp, you can compare the effects of market volatilities on Hanesbrands and Knightswan Acquisition 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 Knightswan Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Knightswan Acquisition.
Diversification Opportunities for Hanesbrands and Knightswan Acquisition
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanesbrands and Knightswan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Knightswan Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightswan Acquisition 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 Knightswan Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightswan Acquisition has no effect on the direction of Hanesbrands i.e., Hanesbrands and Knightswan Acquisition go up and down completely randomly.
Pair Corralation between Hanesbrands and Knightswan Acquisition
If you would invest 790.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Hanesbrands or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hanesbrands vs. Knightswan Acquisition Corp
Performance |
| Timeline |
| Hanesbrands |
| Knightswan Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Knightswan Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Knightswan Acquisition
The main advantage of trading using opposite Hanesbrands and Knightswan Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Knightswan Acquisition 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 Knightswan Acquisition will offset losses from the drop in Knightswan Acquisition's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Knightswan Acquisition vs. Everest Consolidator Acquisition | Knightswan Acquisition vs. PowerUp Acquisition Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |