Correlation Between HNI Corp and Global Star
Can any of the company-specific risk be diversified away by investing in both HNI Corp and Global Star 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 HNI Corp and Global Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Global Star Acquisition, you can compare the effects of market volatilities on HNI Corp and Global Star 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 HNI Corp with a short position of Global Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Global Star.
Diversification Opportunities for HNI Corp and Global Star
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HNI and Global is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Global Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Star Acquisition and HNI Corp 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 HNI Corp are associated (or correlated) with Global Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Star Acquisition has no effect on the direction of HNI Corp i.e., HNI Corp and Global Star go up and down completely randomly.
Pair Corralation between HNI Corp and Global Star
Considering the 90-day investment horizon HNI Corp is expected to generate 4.22 times less return on investment than Global Star. In addition to that, HNI Corp is 1.2 times more volatile than Global Star Acquisition. It trades about 0.03 of its total potential returns per unit of risk. Global Star Acquisition is currently generating about 0.17 per unit of volatility. If you would invest 1,140 in Global Star Acquisition on November 1, 2024 and sell it today you would earn a total of 160.00 from holding Global Star Acquisition or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNI Corp vs. Global Star Acquisition
Performance |
| Timeline |
| HNI Corp |
| Global Star Acquisition |
HNI Corp and Global Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Global Star
The main advantage of trading using opposite HNI Corp and Global Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Global Star 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 Global Star will offset losses from the drop in Global Star's long position.The idea behind HNI Corp and Global Star Acquisition 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.| Global Star vs. Haemonetics | Global Star vs. Utah Medical Products | Global Star vs. HNI Corp | Global Star vs. Lincoln Electric Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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