Correlation Between Hanesbrands and LOWES
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By analyzing existing cross correlation between Hanesbrands and LOWES PANIES INC, you can compare the effects of market volatilities on Hanesbrands and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and LOWES.
Diversification Opportunities for Hanesbrands and LOWES
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and LOWES is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Hanesbrands i.e., Hanesbrands and LOWES go up and down completely randomly.
Pair Corralation between Hanesbrands and LOWES
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.62 times more return on investment than LOWES. However, Hanesbrands is 1.62 times more volatile than LOWES PANIES INC. It trades about 0.14 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.19 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 51.00 from holding Hanesbrands or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hanesbrands vs. LOWES PANIES INC
Performance |
| Timeline |
| Hanesbrands |
| LOWES PANIES INC |
Hanesbrands and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and LOWES
The main advantage of trading using opposite Hanesbrands and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| LOWES vs. Perseus Mining Limited | LOWES vs. Paiute Oil Mining | LOWES vs. Patterson UTI Energy | LOWES vs. Precision Drilling |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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