Correlation Between Hooker Furniture and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Coupang LLC 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 Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Coupang LLC, you can compare the effects of market volatilities on Hooker Furniture and Coupang LLC 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 Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Coupang LLC.
Diversification Opportunities for Hooker Furniture and Coupang LLC
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hooker and Coupang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Coupang LLC go up and down completely randomly.
Pair Corralation between Hooker Furniture and Coupang LLC
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.96 times more return on investment than Coupang LLC. However, Hooker Furniture is 1.04 times less risky than Coupang LLC. It trades about 0.27 of its potential returns per unit of risk. Coupang LLC is currently generating about -0.03 per unit of risk. If you would invest 1,605 in Hooker Furniture on August 28, 2024 and sell it today you would earn a total of 306.00 from holding Hooker Furniture or generate 19.07% 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. Coupang LLC
Performance |
| Timeline |
| Hooker Furniture |
| Coupang LLC |
Hooker Furniture and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Coupang LLC
The main advantage of trading using opposite Hooker Furniture and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |