Correlation Between Hanesbrands and Silver Predator
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Silver Predator 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 Silver Predator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Silver Predator Corp, you can compare the effects of market volatilities on Hanesbrands and Silver Predator 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 Silver Predator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Silver Predator.
Diversification Opportunities for Hanesbrands and Silver Predator
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanesbrands and Silver is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Silver Predator Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Predator Corp 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 Silver Predator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Predator Corp has no effect on the direction of Hanesbrands i.e., Hanesbrands and Silver Predator go up and down completely randomly.
Pair Corralation between Hanesbrands and Silver Predator
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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanesbrands vs. Silver Predator Corp
Performance |
| Timeline |
| Hanesbrands |
| Silver Predator Corp |
Hanesbrands and Silver Predator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Silver Predator
The main advantage of trading using opposite Hanesbrands and Silver Predator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Silver Predator 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 Silver Predator will offset losses from the drop in Silver Predator's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Silver Predator vs. First Majestic Silver | Silver Predator vs. Ivanhoe Energy | Silver Predator vs. Orezone Gold Corp | Silver Predator vs. Faraday Copper 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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