Correlation Between Hanesbrands and Linx SA
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Linx SA 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 Linx SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Linx SA, you can compare the effects of market volatilities on Hanesbrands and Linx SA 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 Linx SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Linx SA.
Diversification Opportunities for Hanesbrands and Linx SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and Linx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Linx SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linx 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 Linx SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linx SA has no effect on the direction of Hanesbrands i.e., Hanesbrands and Linx SA go up and down completely randomly.
Pair Corralation between Hanesbrands and Linx SA
If you would invest 596.00 in Hanesbrands on September 5, 2024 and sell it today you would earn a total of 271.00 from holding Hanesbrands or generate 45.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Hanesbrands vs. Linx SA
Performance |
| Timeline |
| Hanesbrands |
| Linx SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Linx SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Linx SA
The main advantage of trading using opposite Hanesbrands and Linx SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Linx SA 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 Linx SA will offset losses from the drop in Linx SA's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Linx SA vs. Dell Technologies | Linx SA vs. Align Technology | Linx SA vs. Costco Wholesale | Linx SA vs. Take Two Interactive Software |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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