Correlation Between Hanesbrands and Siward Crystal

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

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

Diversification Opportunities for Hanesbrands and Siward Crystal

-0.59

Correlation Coefficient

Hanesbrands  Siward Crystal

Excellent diversification

The 3 months correlation between Hanesbrands and Siward is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Siward Crystal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siward Crystal Technology 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 Siward Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siward Crystal Technology has no effect on the direction of Hanesbrands i.e., Hanesbrands and Siward Crystal go up and down completely randomly.

Pair Corralation between Hanesbrands and Siward Crystal

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the Siward Crystal. In addition to that, Hanesbrands is 2.89 times more volatile than Siward Crystal Technology. It trades about -0.16 of its total potential returns per unit of risk. Siward Crystal Technology is currently generating about -0.05 per unit of volatility. If you would invest  2,605  in Siward Crystal Technology on December 28, 2024 and sell it today you would lose (90.00) from holding Siward Crystal Technology or give up 3.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.16%
Values	Daily Returns

Hanesbrands  vs.  Siward Crystal Technology

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.

Siward Crystal Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siward Crystal Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Siward Crystal 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 Siward Crystal

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

The idea behind Hanesbrands and Siward Crystal Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.