Correlation Between Hanesbrands and SPDR SPASX

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

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

Diversification Opportunities for Hanesbrands and SPDR SPASX

-0.74

Correlation Coefficient

Hanesbrands  SPDR SPASX

Pay attention - limited upside

The 3 months correlation between Hanesbrands and SPDR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and SPDR SPASX Australian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SPASX Australian 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 SPDR SPASX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SPASX Australian has no effect on the direction of Hanesbrands i.e., Hanesbrands and SPDR SPASX go up and down completely randomly.

Pair Corralation between Hanesbrands and SPDR SPASX

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the SPDR SPASX. In addition to that, Hanesbrands is 12.09 times more volatile than SPDR SPASX Australian. It trades about -0.16 of its total potential returns per unit of risk. SPDR SPASX Australian is currently generating about 0.05 per unit of volatility. If you would invest  2,511  in SPDR SPASX Australian on December 27, 2024 and sell it today you would earn a total of  19.00  from holding SPDR SPASX Australian or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Hanesbrands  vs.  SPDR SPASX Australian

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.

SPDR SPASX Australian

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SPASX Australian are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SPDR SPASX is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hanesbrands and SPDR SPASX

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

The idea behind Hanesbrands and SPDR SPASX Australian 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.