Correlation Between Hanesbrands and Calamos Short

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

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

Diversification Opportunities for Hanesbrands and Calamos Short

-0.88

Correlation Coefficient

Hanesbrands  Calamos Short

Pay attention - limited upside

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

Pair Corralation between Hanesbrands and Calamos Short

Considering the 90-day investment horizon Hanesbrands is expected to under-perform the Calamos Short. In addition to that, Hanesbrands is 23.56 times more volatile than Calamos Short Term Bond. It trades about -0.15 of its total potential returns per unit of risk. Calamos Short Term Bond is currently generating about 0.18 per unit of volatility. If you would invest  940.00  in Calamos Short Term Bond on December 28, 2024 and sell it today you would earn a total of  14.00  from holding Calamos Short Term Bond or generate 1.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Hanesbrands  vs.  Calamos Short Term Bond

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.

Calamos Short Term

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Short Term Bond are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Calamos Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hanesbrands and Calamos Short

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

The idea behind Hanesbrands and Calamos Short Term Bond 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.