Correlation Between Hanesbrands and Clearbridge Dividend
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Clearbridge Dividend 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 Clearbridge Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Clearbridge Dividend Strategy, you can compare the effects of market volatilities on Hanesbrands and Clearbridge Dividend 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 Clearbridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Clearbridge Dividend.
Diversification Opportunities for Hanesbrands and Clearbridge Dividend
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hanesbrands and Clearbridge is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Clearbridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Dividend 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 Clearbridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Dividend has no effect on the direction of Hanesbrands i.e., Hanesbrands and Clearbridge Dividend go up and down completely randomly.
Pair Corralation between Hanesbrands and Clearbridge Dividend
Considering the 90-day investment horizon Hanesbrands is expected to generate 5.0 times more return on investment than Clearbridge Dividend. However, Hanesbrands is 5.0 times more volatile than Clearbridge Dividend Strategy. It trades about 0.04 of its potential returns per unit of risk. Clearbridge Dividend Strategy is currently generating about 0.05 per unit of risk. If you would invest 629.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 262.00 from holding Hanesbrands or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hanesbrands vs. Clearbridge Dividend Strategy
Performance |
| Timeline |
| Hanesbrands |
| Clearbridge Dividend |
Hanesbrands and Clearbridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Clearbridge Dividend
The main advantage of trading using opposite Hanesbrands and Clearbridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Clearbridge Dividend 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 Clearbridge Dividend will offset losses from the drop in Clearbridge Dividend's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Clearbridge Dividend vs. Gamco Global Gold | Clearbridge Dividend vs. Global Gold Fund | Clearbridge Dividend vs. Precious Metals And | Clearbridge Dividend vs. Europac Gold 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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