Correlation Between Hanesbrands and CI Marret

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

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

Diversification Opportunities for Hanesbrands and CI Marret

-0.83

Correlation Coefficient

Hanesbrands  CI Marret

Pay attention - limited upside

The 3 months correlation between Hanesbrands and CMAR is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and CI Marret Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Marret Alternative 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 CI Marret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Marret Alternative has no effect on the direction of Hanesbrands i.e., Hanesbrands and CI Marret go up and down completely randomly.

Pair Corralation between Hanesbrands and CI Marret

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the CI Marret. In addition to that, Hanesbrands is 10.43 times more volatile than CI Marret Alternative. It trades about -0.16 of its total potential returns per unit of risk. CI Marret Alternative is currently generating about 0.1 per unit of volatility. If you would invest  1,784  in CI Marret Alternative on December 30, 2024 and sell it today you would earn a total of  35.00  from holding CI Marret Alternative or generate 1.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Hanesbrands  vs.  CI Marret Alternative

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.

CI Marret Alternative

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CI Marret Alternative are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Marret is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hanesbrands and CI Marret

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

The idea behind Hanesbrands and CI Marret Alternative 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.