Correlation Between Naked Brand and Hanesbrands
Can any of the company-specific risk be diversified away by investing in both Naked Brand and Hanesbrands 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 Naked Brand and Hanesbrands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Brand Group and Hanesbrands, you can compare the effects of market volatilities on Naked Brand and Hanesbrands 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 Naked Brand with a short position of Hanesbrands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Brand and Hanesbrands.
Diversification Opportunities for Naked Brand and Hanesbrands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Hanesbrands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Brand Group and Hanesbrands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanesbrands and Naked Brand 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 Naked Brand Group are associated (or correlated) with Hanesbrands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanesbrands has no effect on the direction of Naked Brand i.e., Naked Brand and Hanesbrands go up and down completely randomly.
Pair Corralation between Naked Brand and Hanesbrands
If you would invest (100.00) in Naked Brand Group on January 23, 2024 and sell it today you would earn a total of 100.00 from holding Naked Brand Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Naked Brand Group vs. Hanesbrands
Performance |
Timeline |
Naked Brand Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands |
Naked Brand and Hanesbrands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Naked Brand and Hanesbrands
The main advantage of trading using opposite Naked Brand and Hanesbrands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Brand position performs unexpectedly, Hanesbrands 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 Hanesbrands will offset losses from the drop in Hanesbrands' long position.Naked Brand vs. Patterson UTI Energy | Naked Brand vs. Orbit Garant Drilling | Naked Brand vs. American Airlines Group | Naked Brand vs. Spirit Airlines |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
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 | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |