Correlation Between HNI Corp and Micromobility
Can any of the company-specific risk be diversified away by investing in both HNI Corp and Micromobility 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 Micromobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Micromobility, you can compare the effects of market volatilities on HNI Corp and Micromobility 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 Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Micromobility.
Diversification Opportunities for HNI Corp and Micromobility
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HNI and Micromobility is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility 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 Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of HNI Corp i.e., HNI Corp and Micromobility go up and down completely randomly.
Pair Corralation between HNI Corp and Micromobility
If you would invest 3,944 in HNI Corp on September 4, 2024 and sell it today you would earn a total of 1,736 from holding HNI Corp or generate 44.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
HNI Corp vs. Micromobility
Performance |
| Timeline |
| HNI Corp |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HNI Corp and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Micromobility
The main advantage of trading using opposite HNI Corp and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility's long position.The idea behind HNI Corp and Micromobility 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.| Micromobility vs. Tandy Leather Factory | Micromobility vs. HNI Corp | Micromobility vs. Femasys | Micromobility vs. Duluth 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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