Correlation Between Hanesbrands and CATERPILLAR
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By analyzing existing cross correlation between Hanesbrands and CATERPILLAR FINANCIAL SERVICES, you can compare the effects of market volatilities on Hanesbrands and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and CATERPILLAR.
Diversification Opportunities for Hanesbrands and CATERPILLAR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanesbrands and CATERPILLAR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and CATERPILLAR FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR FINANCIAL 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR FINANCIAL has no effect on the direction of Hanesbrands i.e., Hanesbrands and CATERPILLAR go up and down completely randomly.
Pair Corralation between Hanesbrands and CATERPILLAR
Considering the 90-day investment horizon Hanesbrands is expected to generate 12.9 times more return on investment than CATERPILLAR. However, Hanesbrands is 12.9 times more volatile than CATERPILLAR FINANCIAL SERVICES. It trades about 0.1 of its potential returns per unit of risk. CATERPILLAR FINANCIAL SERVICES 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 Against |
| Strength | Insignificant |
| Accuracy | 95.17% |
| Values | Daily Returns |
Hanesbrands vs. CATERPILLAR FINANCIAL SERVICES
Performance |
| Timeline |
| Hanesbrands |
| CATERPILLAR FINANCIAL |
Hanesbrands and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and CATERPILLAR
The main advantage of trading using opposite Hanesbrands and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| CATERPILLAR vs. Southwest Gas Holdings | CATERPILLAR vs. Algoma Steel Group | CATERPILLAR vs. Allegheny Technologies Incorporated | CATERPILLAR vs. NRG Energy |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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