Correlation Between Hanesbrands and TTET Union

Can any of the company-specific risk be diversified away by investing in both Hanesbrands and TTET Union 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 TTET Union into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hanesbrands and TTET Union Corp, you can compare the effects of market volatilities on Hanesbrands and TTET Union 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 TTET Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and TTET Union.

Diversification Opportunities for Hanesbrands and TTET Union

-0.88

Correlation Coefficient

Hanesbrands  TTET Union

Pay attention - limited upside

The 3 months correlation between Hanesbrands and TTET is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and TTET Union Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTET Union Corp 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 TTET Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTET Union Corp has no effect on the direction of Hanesbrands i.e., Hanesbrands and TTET Union go up and down completely randomly.

Pair Corralation between Hanesbrands and TTET Union

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the TTET Union. In addition to that, Hanesbrands is 4.28 times more volatile than TTET Union Corp. It trades about -0.16 of its total potential returns per unit of risk. TTET Union Corp is currently generating about 0.1 per unit of volatility. If you would invest  14,550  in TTET Union Corp on December 30, 2024 and sell it today you would earn a total of  600.00  from holding TTET Union Corp or generate 4.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	91.94%
Values	Daily Returns

Hanesbrands  vs.  TTET Union Corp

Hanesbrands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hanesbrands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

TTET Union Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TTET Union Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, TTET Union is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Hanesbrands and TTET Union

The main advantage of trading using opposite Hanesbrands and TTET Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, TTET Union 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 TTET Union will offset losses from the drop in TTET Union's long position.

The idea behind Hanesbrands and TTET Union Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.