Correlation Between Hanesbrands and BCECN
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By analyzing existing cross correlation between Hanesbrands and BCECN 215 15 FEB 32, you can compare the effects of market volatilities on Hanesbrands and BCECN 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 BCECN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and BCECN.
Diversification Opportunities for Hanesbrands and BCECN
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and BCECN is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and BCECN 215 15 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCECN 215 15 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 BCECN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCECN 215 15 has no effect on the direction of Hanesbrands i.e., Hanesbrands and BCECN go up and down completely randomly.
Pair Corralation between Hanesbrands and BCECN
Considering the 90-day investment horizon Hanesbrands is expected to generate 2.46 times more return on investment than BCECN. However, Hanesbrands is 2.46 times more volatile than BCECN 215 15 FEB 32. It trades about 0.2 of its potential returns per unit of risk. BCECN 215 15 FEB 32 is currently generating about -0.21 per unit of risk. If you would invest 790.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 76.00 from holding Hanesbrands or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Hanesbrands vs. BCECN 215 15 FEB 32
Performance |
| Timeline |
| Hanesbrands |
| BCECN 215 15 |
Hanesbrands and BCECN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and BCECN
The main advantage of trading using opposite Hanesbrands and BCECN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, BCECN 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 BCECN will offset losses from the drop in BCECN'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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