Correlation Between Hanesbrands and Midcap Growth
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Midcap Growth 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 Midcap Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Midcap Growth Fund, you can compare the effects of market volatilities on Hanesbrands and Midcap Growth 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 Midcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Midcap Growth.
Diversification Opportunities for Hanesbrands and Midcap Growth
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hanesbrands and Midcap is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Midcap Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midcap Growth 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 Midcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midcap Growth has no effect on the direction of Hanesbrands i.e., Hanesbrands and Midcap Growth go up and down completely randomly.
Pair Corralation between Hanesbrands and Midcap Growth
Considering the 90-day investment horizon Hanesbrands is expected to generate 3.65 times more return on investment than Midcap Growth. However, Hanesbrands is 3.65 times more volatile than Midcap Growth Fund. It trades about 0.21 of its potential returns per unit of risk. Midcap Growth Fund is currently generating about 0.67 per unit of risk. If you would invest 712.00 in Hanesbrands on September 5, 2024 and sell it today you would earn a total of 146.00 from holding Hanesbrands or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.27% |
| Values | Daily Returns |
Hanesbrands vs. Midcap Growth Fund
Performance |
| Timeline |
| Hanesbrands |
| Midcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Hanesbrands and Midcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Midcap Growth
The main advantage of trading using opposite Hanesbrands and Midcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Midcap Growth 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 Midcap Growth will offset losses from the drop in Midcap Growth's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management | Midcap Growth vs. Strategic Asset Management |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |