Correlation Between Hanesbrands and SimCorp AS
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and SimCorp AS 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 SimCorp AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and SimCorp AS, you can compare the effects of market volatilities on Hanesbrands and SimCorp AS 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 SimCorp AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and SimCorp AS.
Diversification Opportunities for Hanesbrands and SimCorp AS
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and SimCorp is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and SimCorp AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimCorp AS 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 SimCorp AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimCorp AS has no effect on the direction of Hanesbrands i.e., Hanesbrands and SimCorp AS go up and down completely randomly.
Pair Corralation between Hanesbrands and SimCorp AS
If you would invest 712.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 179.00 from holding Hanesbrands or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hanesbrands vs. SimCorp AS
Performance |
| Timeline |
| Hanesbrands |
| SimCorp AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and SimCorp AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and SimCorp AS
The main advantage of trading using opposite Hanesbrands and SimCorp AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, SimCorp AS 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 SimCorp AS will offset losses from the drop in SimCorp AS's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| SimCorp AS vs. HeartCore Enterprises | SimCorp AS vs. Infobird Co | SimCorp AS vs. Quhuo | SimCorp AS vs. Workday |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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