Correlation Between Hanesbrands and Stratim Cloud
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Stratim Cloud 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 Stratim Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Stratim Cloud Acquisition, you can compare the effects of market volatilities on Hanesbrands and Stratim Cloud 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 Stratim Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Stratim Cloud.
Diversification Opportunities for Hanesbrands and Stratim Cloud
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hanesbrands and Stratim is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Stratim Cloud Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratim Cloud Acquisition 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 Stratim Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratim Cloud Acquisition has no effect on the direction of Hanesbrands i.e., Hanesbrands and Stratim Cloud go up and down completely randomly.
Pair Corralation between Hanesbrands and Stratim Cloud
Considering the 90-day investment horizon Hanesbrands is expected to generate 22.11 times more return on investment than Stratim Cloud. However, Hanesbrands is 22.11 times more volatile than Stratim Cloud Acquisition. It trades about 0.04 of its potential returns per unit of risk. Stratim Cloud Acquisition is currently generating about 0.19 per unit of risk. If you would invest 629.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 262.00 from holding Hanesbrands or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 29.49% |
| Values | Daily Returns |
Hanesbrands vs. Stratim Cloud Acquisition
Performance |
| Timeline |
| Hanesbrands |
| Stratim Cloud Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Stratim Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Stratim Cloud
The main advantage of trading using opposite Hanesbrands and Stratim Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Stratim Cloud 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 Stratim Cloud will offset losses from the drop in Stratim Cloud's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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