Correlation Between HNI Corp and 693304AT4
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By analyzing existing cross correlation between HNI Corp and PECO ENERGY 315, you can compare the effects of market volatilities on HNI Corp and 693304AT4 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 693304AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and 693304AT4.
Diversification Opportunities for HNI Corp and 693304AT4
Average diversification
The 3 months correlation between HNI and 693304AT4 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and PECO ENERGY 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 315 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 693304AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 315 has no effect on the direction of HNI Corp i.e., HNI Corp and 693304AT4 go up and down completely randomly.
Pair Corralation between HNI Corp and 693304AT4
Considering the 90-day investment horizon HNI Corp is expected to generate 3.01 times more return on investment than 693304AT4. However, HNI Corp is 3.01 times more volatile than PECO ENERGY 315. It trades about -0.01 of its potential returns per unit of risk. PECO ENERGY 315 is currently generating about -0.2 per unit of risk. If you would invest 5,128 in HNI Corp on October 25, 2024 and sell it today you would lose (25.00) from holding HNI Corp or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
HNI Corp vs. PECO ENERGY 315
Performance |
| Timeline |
| HNI Corp |
| PECO ENERGY 315 |
HNI Corp and 693304AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and 693304AT4
The main advantage of trading using opposite HNI Corp and 693304AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, 693304AT4 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 693304AT4 will offset losses from the drop in 693304AT4's long position.The idea behind HNI Corp and PECO ENERGY 315 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.| 693304AT4 vs. Teleflex Incorporated | 693304AT4 vs. Zhihu Inc ADR | 693304AT4 vs. Asure Software | 693304AT4 vs. ServiceNow |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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