Correlation Between Hanesbrands and ZKB Silver
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and ZKB Silver 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 ZKB Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and ZKB Silver ETF, you can compare the effects of market volatilities on Hanesbrands and ZKB Silver 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 ZKB Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and ZKB Silver.
Diversification Opportunities for Hanesbrands and ZKB Silver
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and ZKB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and ZKB Silver ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Silver ETF 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 ZKB Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Silver ETF has no effect on the direction of Hanesbrands i.e., Hanesbrands and ZKB Silver go up and down completely randomly.
Pair Corralation between Hanesbrands and ZKB Silver
Considering the 90-day investment horizon Hanesbrands is expected to generate 1.84 times more return on investment than ZKB Silver. However, Hanesbrands is 1.84 times more volatile than ZKB Silver ETF. It trades about 0.14 of its potential returns per unit of risk. ZKB Silver ETF is currently generating about 0.0 per unit of risk. If you would invest 525.00 in Hanesbrands on September 4, 2024 and sell it today you would earn a total of 366.00 from holding Hanesbrands or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.66% |
| Values | Daily Returns |
Hanesbrands vs. ZKB Silver ETF
Performance |
| Timeline |
| Hanesbrands |
| ZKB Silver ETF |
Hanesbrands and ZKB Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanesbrands and ZKB Silver
The main advantage of trading using opposite Hanesbrands and ZKB Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, ZKB Silver 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 ZKB Silver will offset losses from the drop in ZKB Silver's long position.| Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
| ZKB Silver vs. ZKB Silver ETF | ZKB Silver vs. ZKB Gold ETF | ZKB Silver vs. ZKB Gold ETF | ZKB Silver vs. ZKB Platinum ETF |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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