Correlation Between Hanesbrands and Bollore SA
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Bollore SA 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 Bollore SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Bollore SA, you can compare the effects of market volatilities on Hanesbrands and Bollore SA 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 Bollore SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Bollore SA.
Diversification Opportunities for Hanesbrands and Bollore SA
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanesbrands and Bollore is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Bollore SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollore SA 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 Bollore SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollore SA has no effect on the direction of Hanesbrands i.e., Hanesbrands and Bollore SA go up and down completely randomly.
Pair Corralation between Hanesbrands and Bollore SA
Considering the 90-day investment horizon Hanesbrands is expected to generate 2.79 times more return on investment than Bollore SA. However, Hanesbrands is 2.79 times more volatile than Bollore SA. It trades about 0.17 of its potential returns per unit of risk. Bollore SA is currently generating about 0.04 per unit of risk. If you would invest 632.00 in Hanesbrands on September 6, 2024 and sell it today you would earn a total of 226.00 from holding Hanesbrands or generate 35.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Hanesbrands vs. Bollore SA
Performance |
Timeline |
Hanesbrands |
Bollore SA |
Hanesbrands and Bollore SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanesbrands and Bollore SA
The main advantage of trading using opposite Hanesbrands and Bollore SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Bollore SA 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 Bollore SA will offset losses from the drop in Bollore SA's long position.Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
Bollore SA vs. Vivendi SA | Bollore SA vs. Wendel | Bollore SA vs. Compagnie de lOdet | Bollore SA vs. Eurazeo |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |