Correlation Between Hanesbrands and Fidelity Advisor

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

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

Diversification Opportunities for Hanesbrands and Fidelity Advisor

0.0

Correlation Coefficient

Hanesbrands  Fidelity Advisor

Pay attention - limited upside

The 3 months correlation between Hanesbrands and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Fidelity Advisor Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Balanced 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Balanced has no effect on the direction of Hanesbrands i.e., Hanesbrands and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Hanesbrands and Fidelity Advisor

If you would invest (100.00) in Fidelity Advisor Balanced on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Fidelity Advisor Balanced or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hanesbrands  vs.  Fidelity Advisor Balanced

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.

Fidelity Advisor Balanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Advisor Balanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Advisor 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 Fidelity Advisor

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

The idea behind Hanesbrands and Fidelity Advisor Balanced 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.