Correlation Between Hanesbrands and Agile Group

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

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

Diversification Opportunities for Hanesbrands and Agile Group

0.62

Correlation Coefficient

Hanesbrands  Agile Group

Poor diversification

The 3 months correlation between Hanesbrands and Agile is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Agile Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Group Holdings 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 Agile Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Group Holdings has no effect on the direction of Hanesbrands i.e., Hanesbrands and Agile Group go up and down completely randomly.

Pair Corralation between Hanesbrands and Agile Group

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the Agile Group. But the stock apears to be less risky and, when comparing its historical volatility, Hanesbrands is 1.37 times less risky than Agile Group. The stock trades about -0.16 of its potential returns per unit of risk. The Agile Group Holdings is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  490.00  in Agile Group Holdings on December 30, 2024 and sell it today you would lose (138.00) from holding Agile Group Holdings or give up 28.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Hanesbrands  vs.  Agile Group Holdings

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.

Agile Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agile Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hanesbrands and Agile Group

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

The idea behind Hanesbrands and Agile Group Holdings 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.