Correlation Between Hanesbrands and Locorr Macro
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Locorr Macro 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 Locorr Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Locorr Macro Strategies, you can compare the effects of market volatilities on Hanesbrands and Locorr Macro 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 Locorr Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Locorr Macro.
Diversification Opportunities for Hanesbrands and Locorr Macro
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanesbrands and Locorr is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Locorr Macro Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Macro Strategies 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 Locorr Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Macro Strategies has no effect on the direction of Hanesbrands i.e., Hanesbrands and Locorr Macro go up and down completely randomly.
Pair Corralation between Hanesbrands and Locorr Macro
Considering the 90-day investment horizon Hanesbrands is expected to generate 10.02 times more return on investment than Locorr Macro. However, Hanesbrands is 10.02 times more volatile than Locorr Macro Strategies. It trades about 0.17 of its potential returns per unit of risk. Locorr Macro Strategies is currently generating about 0.03 per unit of risk. If you would invest 691.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 179.00 from holding Hanesbrands or generate 25.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Locorr Macro Strategies
Performance |
| Timeline |
| Hanesbrands |
| Locorr Macro Strategies |
Hanesbrands and Locorr Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Locorr Macro
The main advantage of trading using opposite Hanesbrands and Locorr Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Locorr Macro 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 Locorr Macro will offset losses from the drop in Locorr Macro's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Locorr Macro vs. Calamos Dynamic Convertible | Locorr Macro vs. Gabelli Convertible And | Locorr Macro vs. Fidelity Sai Convertible | Locorr Macro vs. Allianzgi Convertible Income |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |