Correlation Between Hanesbrands and Focused Opportunities
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Focused Opportunities 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 Focused Opportunities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Focused Opportunities Series, you can compare the effects of market volatilities on Hanesbrands and Focused Opportunities 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 Focused Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Focused Opportunities.
Diversification Opportunities for Hanesbrands and Focused Opportunities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanesbrands and Focused is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Focused Opportunities Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focused Opportunities 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 Focused Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focused Opportunities has no effect on the direction of Hanesbrands i.e., Hanesbrands and Focused Opportunities go up and down completely randomly.
Pair Corralation between Hanesbrands and Focused Opportunities
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hanesbrands vs. Focused Opportunities Series
Performance |
| Timeline |
| Hanesbrands |
| Focused Opportunities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Focused Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Focused Opportunities
The main advantage of trading using opposite Hanesbrands and Focused Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Focused Opportunities 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 Focused Opportunities will offset losses from the drop in Focused Opportunities' long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Focused Opportunities vs. Barings Emerging Markets | Focused Opportunities vs. Rbc Emerging Markets | Focused Opportunities vs. Oklahoma College Savings | Focused Opportunities vs. Mondrian Emerging Markets |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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