Correlation Between Hanesbrands and Sunsweet Public
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Sunsweet Public 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 Sunsweet Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Sunsweet Public, you can compare the effects of market volatilities on Hanesbrands and Sunsweet Public 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 Sunsweet Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Sunsweet Public.
Diversification Opportunities for Hanesbrands and Sunsweet Public
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and Sunsweet is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Sunsweet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunsweet Public 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 Sunsweet Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunsweet Public has no effect on the direction of Hanesbrands i.e., Hanesbrands and Sunsweet Public go up and down completely randomly.
Pair Corralation between Hanesbrands and Sunsweet Public
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.59 times more return on investment than Sunsweet Public. However, Hanesbrands is 1.59 times more volatile than Sunsweet Public. It trades about 0.1 of its potential returns per unit of risk. Sunsweet Public is currently generating about 0.03 per unit of risk. If you would invest 392.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 499.00 from holding Hanesbrands or generate 127.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.9% |
| Values | Daily Returns |
Hanesbrands vs. Sunsweet Public
Performance |
| Timeline |
| Hanesbrands |
| Sunsweet Public |
Hanesbrands and Sunsweet Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Sunsweet Public
The main advantage of trading using opposite Hanesbrands and Sunsweet Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Sunsweet Public 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 Sunsweet Public will offset losses from the drop in Sunsweet Public's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Sunsweet Public vs. Muang Thai Insurance | Sunsweet Public vs. Indara Insurance Public | Sunsweet Public vs. Thai Nakarin Hospital | Sunsweet Public vs. Healthlead Public |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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