Correlation Between Hanesbrands and PolyPeptide Group
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and PolyPeptide Group 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 PolyPeptide Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and PolyPeptide Group AG, you can compare the effects of market volatilities on Hanesbrands and PolyPeptide Group 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 PolyPeptide Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and PolyPeptide Group.
Diversification Opportunities for Hanesbrands and PolyPeptide Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and PolyPeptide is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and PolyPeptide Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPeptide Group 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 PolyPeptide Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPeptide Group has no effect on the direction of Hanesbrands i.e., Hanesbrands and PolyPeptide Group go up and down completely randomly.
Pair Corralation between Hanesbrands and PolyPeptide Group
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.37 times more return on investment than PolyPeptide Group. However, Hanesbrands is 1.37 times more volatile than PolyPeptide Group AG. It trades about 0.13 of its potential returns per unit of risk. PolyPeptide Group AG is currently generating about -0.04 per unit of risk. If you would invest 499.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 342.00 from holding Hanesbrands or generate 68.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Hanesbrands vs. PolyPeptide Group AG
Performance |
| Timeline |
| Hanesbrands |
| PolyPeptide Group |
Hanesbrands and PolyPeptide Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and PolyPeptide Group
The main advantage of trading using opposite Hanesbrands and PolyPeptide Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, PolyPeptide Group 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 PolyPeptide Group will offset losses from the drop in PolyPeptide Group's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| PolyPeptide Group vs. Bachem Holding AG | PolyPeptide Group vs. Siegfried Holding | PolyPeptide Group vs. VAT Group AG | PolyPeptide Group vs. Comet Holding AG |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |