Correlation Between Femasys and Hooker Furniture
Can any of the company-specific risk be diversified away by investing in both Femasys and Hooker Furniture 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 Femasys and Hooker Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Hooker Furniture, you can compare the effects of market volatilities on Femasys and Hooker Furniture 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 Femasys with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Hooker Furniture.
Diversification Opportunities for Femasys and Hooker Furniture
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Femasys and Hooker is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and Femasys 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 Femasys are associated (or correlated) with Hooker Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hooker Furniture has no effect on the direction of Femasys i.e., Femasys and Hooker Furniture go up and down completely randomly.
Pair Corralation between Femasys and Hooker Furniture
Given the investment horizon of 90 days Femasys is expected to under-perform the Hooker Furniture. In addition to that, Femasys is 1.48 times more volatile than Hooker Furniture. It trades about -0.16 of its total potential returns per unit of risk. Hooker Furniture is currently generating about 0.27 per unit of volatility. If you would invest 1,605 in Hooker Furniture on August 28, 2024 and sell it today you would earn a total of 306.00 from holding Hooker Furniture or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Hooker Furniture
Performance |
| Timeline |
| Femasys |
| Hooker Furniture |
Femasys and Hooker Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Hooker Furniture
The main advantage of trading using opposite Femasys and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Hooker Furniture 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 Hooker Furniture will offset losses from the drop in Hooker Furniture's long position.| Femasys vs. Heartbeam | Femasys vs. EUDA Health Holdings | Femasys vs. Nutex Health | Femasys vs. Healthcare Triangle |
| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |