Correlation Between Hanesbrands and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both Hanesbrands and Nighthawk Gold 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 Nighthawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanesbrands and Nighthawk Gold Corp, you can compare the effects of market volatilities on Hanesbrands and Nighthawk Gold 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 Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanesbrands and Nighthawk Gold.
Diversification Opportunities for Hanesbrands and Nighthawk Gold
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanesbrands and Nighthawk is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hanesbrands and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold Corp 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of Hanesbrands i.e., Hanesbrands and Nighthawk Gold go up and down completely randomly.
Pair Corralation between Hanesbrands and Nighthawk Gold
If you would invest 617.00 in Hanesbrands on September 7, 2024 and sell it today you would earn a total of 244.00 from holding Hanesbrands or generate 39.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Hanesbrands vs. Nighthawk Gold Corp
Performance |
Timeline |
Hanesbrands |
Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanesbrands and Nighthawk Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanesbrands and Nighthawk Gold
The main advantage of trading using opposite Hanesbrands and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanesbrands position performs unexpectedly, Nighthawk Gold 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.Hanesbrands vs. Ralph Lauren Corp | Hanesbrands vs. Levi Strauss Co | Hanesbrands vs. Under Armour C | Hanesbrands vs. PVH Corp |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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