Correlation Between Hanesbrands and Living Cell
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Living Cell 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 Living Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Living Cell Technologies, you can compare the effects of market volatilities on Hanesbrands and Living Cell 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 Living Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Living Cell.
Diversification Opportunities for Hanesbrands and Living Cell
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanesbrands and Living is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Living Cell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Living Cell Technologies 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 Living Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Living Cell Technologies has no effect on the direction of Hanesbrands i.e., Hanesbrands and Living Cell go up and down completely randomly.
Pair Corralation between Hanesbrands and Living Cell
If you would invest 712.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 179.00 from holding Hanesbrands or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Living Cell Technologies
Performance |
| Timeline |
| Hanesbrands |
| Living Cell Technologies |
Hanesbrands and Living Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Living Cell
The main advantage of trading using opposite Hanesbrands and Living Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Living Cell 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 Living Cell will offset losses from the drop in Living Cell's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Living Cell vs. Therapeutic Solutions International | Living Cell vs. Alpha Cognition | Living Cell vs. Vg Life Sciences | Living Cell vs. Adagene |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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