Correlation Between Hanesbrands and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Landcadia Holdings 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 Landcadia Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Landcadia Holdings II, you can compare the effects of market volatilities on Hanesbrands and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Landcadia Holdings.
Diversification Opportunities for Hanesbrands and Landcadia Holdings
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Landcadia is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of Hanesbrands i.e., Hanesbrands and Landcadia Holdings go up and down completely randomly.
Pair Corralation between Hanesbrands and Landcadia Holdings
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 Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Hanesbrands vs. Landcadia Holdings II
Performance |
| Timeline |
| Hanesbrands |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Landcadia Holdings
The main advantage of trading using opposite Hanesbrands and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Landcadia Holdings vs. Meiwu Technology Co | Landcadia Holdings vs. MGIC Investment Corp | Landcadia Holdings vs. LB Foster | Landcadia Holdings vs. Employers Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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