Correlation Between HNI Corp and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both HNI Corp and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Siriuspoint, you can compare the effects of market volatilities on HNI Corp and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Siriuspoint.
Diversification Opportunities for HNI Corp and Siriuspoint
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HNI and Siriuspoint is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of HNI Corp i.e., HNI Corp and Siriuspoint go up and down completely randomly.
Pair Corralation between HNI Corp and Siriuspoint
Considering the 90-day investment horizon HNI Corp is expected to generate 1.41 times less return on investment than Siriuspoint. But when comparing it to its historical volatility, HNI Corp is 1.42 times less risky than Siriuspoint. It trades about 0.25 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Siriuspoint on August 28, 2024 and sell it today you would earn a total of 200.00 from holding Siriuspoint or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNI Corp vs. Siriuspoint
Performance |
| Timeline |
| HNI Corp |
| Siriuspoint |
HNI Corp and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Siriuspoint
The main advantage of trading using opposite HNI Corp and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| HNI Corp vs. Park Electrochemical | HNI Corp vs. Innovative Solutions and | HNI Corp vs. Curtiss Wright | HNI Corp vs. National Presto Industries |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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