Correlation Between Hanesbrands and Xtrackers Switzerland
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Xtrackers Switzerland 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 Xtrackers Switzerland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Xtrackers Switzerland UCITS, you can compare the effects of market volatilities on Hanesbrands and Xtrackers Switzerland 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 Xtrackers Switzerland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Xtrackers Switzerland.
Diversification Opportunities for Hanesbrands and Xtrackers Switzerland
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanesbrands and Xtrackers is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Xtrackers Switzerland UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Switzerland 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 Xtrackers Switzerland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Switzerland has no effect on the direction of Hanesbrands i.e., Hanesbrands and Xtrackers Switzerland go up and down completely randomly.
Pair Corralation between Hanesbrands and Xtrackers Switzerland
Considering the 90-day investment horizon Hanesbrands is expected to generate 4.92 times more return on investment than Xtrackers Switzerland. However, Hanesbrands is 4.92 times more volatile than Xtrackers Switzerland UCITS. It trades about 0.04 of its potential returns per unit of risk. Xtrackers Switzerland UCITS is currently generating about 0.03 per unit of risk. If you would invest 592.00 in Hanesbrands on September 12, 2024 and sell it today you would earn a total of 249.00 from holding Hanesbrands or generate 42.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hanesbrands vs. Xtrackers Switzerland UCITS
Performance |
| Timeline |
| Hanesbrands |
| Xtrackers Switzerland |
Hanesbrands and Xtrackers Switzerland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and Xtrackers Switzerland
The main advantage of trading using opposite Hanesbrands and Xtrackers Switzerland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Xtrackers Switzerland 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 Xtrackers Switzerland will offset losses from the drop in Xtrackers Switzerland's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| Xtrackers Switzerland vs. Baloise Holding AG | Xtrackers Switzerland vs. 21Shares Polkadot ETP | Xtrackers Switzerland vs. UBS ETF MSCI | Xtrackers Switzerland vs. BB Biotech AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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