Correlation Between Hooker Furniture and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Corsair Gaming 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 Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Corsair Gaming, you can compare the effects of market volatilities on Hooker Furniture and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Corsair Gaming.
Diversification Opportunities for Hooker Furniture and Corsair Gaming
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hooker and Corsair is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Corsair Gaming go up and down completely randomly.
Pair Corralation between Hooker Furniture and Corsair Gaming
Given the investment horizon of 90 days Hooker Furniture is expected to generate 1.02 times more return on investment than Corsair Gaming. However, Hooker Furniture is 1.02 times more volatile than Corsair Gaming. It trades about 0.03 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.08 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Corsair Gaming
Performance |
| Timeline |
| Hooker Furniture |
| Corsair Gaming |
Hooker Furniture and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Corsair Gaming
The main advantage of trading using opposite Hooker Furniture and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming'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 |
| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Skillz Platform | Corsair Gaming vs. Fubotv Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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