Correlation Between Hooker Furniture and Albertsons Companies
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Albertsons Companies 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 Hooker Furniture and Albertsons Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Albertsons Companies, you can compare the effects of market volatilities on Hooker Furniture and Albertsons Companies 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 Hooker Furniture with a short position of Albertsons Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Albertsons Companies.
Diversification Opportunities for Hooker Furniture and Albertsons Companies
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hooker and Albertsons is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Albertsons Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albertsons Companies and Hooker Furniture 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 Hooker Furniture are associated (or correlated) with Albertsons Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albertsons Companies has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Albertsons Companies go up and down completely randomly.
Pair Corralation between Hooker Furniture and Albertsons Companies
Given the investment horizon of 90 days Hooker Furniture is expected to generate 2.93 times more return on investment than Albertsons Companies. However, Hooker Furniture is 2.93 times more volatile than Albertsons Companies. It trades about 0.23 of its potential returns per unit of risk. Albertsons Companies is currently generating about 0.27 per unit of risk. If you would invest 1,626 in Hooker Furniture on September 2, 2024 and sell it today you would earn a total of 247.00 from holding Hooker Furniture or generate 15.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Albertsons Companies
Performance |
| Timeline |
| Hooker Furniture |
| Albertsons Companies |
Hooker Furniture and Albertsons Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Albertsons Companies
The main advantage of trading using opposite Hooker Furniture and Albertsons Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Albertsons Companies 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 Albertsons Companies will offset losses from the drop in Albertsons Companies' long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Willis Lease Finance | Hooker Furniture vs. Rocky Brands | Hooker Furniture vs. First Business Financial |
| Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Weis Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |