Correlation Between Hanesbrands and Mfs Municipal
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Mfs Municipal 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 Mfs Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Mfs Municipal Limited, you can compare the effects of market volatilities on Hanesbrands and Mfs Municipal 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 Mfs Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Mfs Municipal.
Diversification Opportunities for Hanesbrands and Mfs Municipal
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hanesbrands and Mfs is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Mfs Municipal Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Municipal Limited 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 Mfs Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Municipal Limited has no effect on the direction of Hanesbrands i.e., Hanesbrands and Mfs Municipal go up and down completely randomly.
Pair Corralation between Hanesbrands and Mfs Municipal
Considering the 90-day investment horizon Hanesbrands is expected to generate 39.64 times more return on investment than Mfs Municipal. However, Hanesbrands is 39.64 times more volatile than Mfs Municipal Limited. It trades about 0.13 of its potential returns per unit of risk. Mfs Municipal Limited is currently generating about 0.55 per unit of risk. If you would invest 798.00 in Hanesbrands on September 13, 2024 and sell it today you would earn a total of 43.00 from holding Hanesbrands or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Mfs Municipal Limited
Performance |
| Timeline |
| Hanesbrands |
| Mfs Municipal Limited |
Hanesbrands and Mfs Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Mfs Municipal
The main advantage of trading using opposite Hanesbrands and Mfs Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Mfs Municipal 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 Mfs Municipal will offset losses from the drop in Mfs Municipal's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Mfs Municipal vs. Deutsche Real Estate | Mfs Municipal vs. Redwood Real Estate | Mfs Municipal vs. Short Real Estate | Mfs Municipal vs. Pender Real Estate |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |