Correlation Between Hanesbrands and Vitro SAB
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Vitro SAB 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 Vitro SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Vitro SAB de, you can compare the effects of market volatilities on Hanesbrands and Vitro SAB 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 Vitro SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Vitro SAB.
Diversification Opportunities for Hanesbrands and Vitro SAB
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanesbrands and Vitro is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Vitro SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitro SAB de 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 Vitro SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitro SAB de has no effect on the direction of Hanesbrands i.e., Hanesbrands and Vitro SAB go up and down completely randomly.
Pair Corralation between Hanesbrands and Vitro SAB
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.28 times more return on investment than Vitro SAB. However, Hanesbrands is 1.28 times more volatile than Vitro SAB de. It trades about 0.11 of its potential returns per unit of risk. Vitro SAB de is currently generating about -0.16 per unit of risk. If you would invest 387.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 480.00 from holding Hanesbrands or generate 124.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.12% |
| Values | Daily Returns |
Hanesbrands vs. Vitro SAB de
Performance |
| Timeline |
| Hanesbrands |
| Vitro SAB de |
Hanesbrands and Vitro SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Vitro SAB
The main advantage of trading using opposite Hanesbrands and Vitro SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Vitro SAB 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 Vitro SAB will offset losses from the drop in Vitro SAB's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Vitro SAB vs. Grupo Hotelero Santa | Vitro SAB vs. First Majestic Silver | Vitro SAB vs. Samsung Electronics Co | Vitro SAB vs. GMxico Transportes SAB |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |