Correlation Between Hooker Furniture and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Celsius Holdings 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 Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Celsius Holdings, you can compare the effects of market volatilities on Hooker Furniture and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Celsius Holdings.
Diversification Opportunities for Hooker Furniture and Celsius Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hooker and Celsius is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Celsius Holdings go up and down completely randomly.
Pair Corralation between Hooker Furniture and Celsius Holdings
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.76 times more return on investment than Celsius Holdings. However, Hooker Furniture is 1.32 times less risky than Celsius Holdings. It trades about 0.03 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,587 in Hooker Furniture on August 31, 2024 and sell it today you would earn a total of 286.00 from holding Hooker Furniture or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Celsius Holdings
Performance |
| Timeline |
| Hooker Furniture |
| Celsius Holdings |
Hooker Furniture and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Celsius Holdings
The main advantage of trading using opposite Hooker Furniture and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. The Coca Cola | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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