Correlation Between Hanesbrands and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Cohen Steers Low, you can compare the effects of market volatilities on Hanesbrands and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Cohen Steers.
Diversification Opportunities for Hanesbrands and Cohen Steers
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanesbrands and Cohen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Low has no effect on the direction of Hanesbrands i.e., Hanesbrands and Cohen Steers go up and down completely randomly.
Pair Corralation between Hanesbrands and Cohen Steers
Considering the 90-day investment horizon Hanesbrands is expected to generate 17.76 times more return on investment than Cohen Steers. However, Hanesbrands is 17.76 times more volatile than Cohen Steers Low. It trades about 0.04 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.13 per unit of risk. If you would invest 637.00 in Hanesbrands on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Hanesbrands or generate 36.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Cohen Steers Low
Performance |
| Timeline |
| Hanesbrands |
| Cohen Steers Low |
Hanesbrands and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Cohen Steers
The main advantage of trading using opposite Hanesbrands and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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