Correlation Between Hanesbrands and Great West
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Great West 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 Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Great West E Bond, you can compare the effects of market volatilities on Hanesbrands and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Great West.
Diversification Opportunities for Hanesbrands and Great West
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and Great is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Great West E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West E 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West E has no effect on the direction of Hanesbrands i.e., Hanesbrands and Great West go up and down completely randomly.
Pair Corralation between Hanesbrands and Great West
Considering the 90-day investment horizon Hanesbrands is expected to generate 7.61 times more return on investment than Great West. However, Hanesbrands is 7.61 times more volatile than Great West E Bond. It trades about 0.15 of its potential returns per unit of risk. Great West E Bond is currently generating about 0.15 per unit of risk. If you would invest 790.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Hanesbrands or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hanesbrands vs. Great West E Bond
Performance |
| Timeline |
| Hanesbrands |
| Great West E |
Hanesbrands and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Great West
The main advantage of trading using opposite Hanesbrands and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Great West vs. Americafirst Large Cap | Great West vs. M Large Cap | Great West vs. Transamerica Large Cap | Great West vs. Qs Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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