Correlation Between Hooker Furniture and Flagstar Financial,
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Flagstar Financial, 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 Flagstar Financial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Flagstar Financial,, you can compare the effects of market volatilities on Hooker Furniture and Flagstar Financial, 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 Flagstar Financial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Flagstar Financial,.
Diversification Opportunities for Hooker Furniture and Flagstar Financial,
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hooker and Flagstar is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Flagstar Financial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Financial, 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 Flagstar Financial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Financial, has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Flagstar Financial, go up and down completely randomly.
Pair Corralation between Hooker Furniture and Flagstar Financial,
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Flagstar Financial,. But the stock apears to be less risky and, when comparing its historical volatility, Hooker Furniture is 2.82 times less risky than Flagstar Financial,. The stock trades about -0.19 of its potential returns per unit of risk. The Flagstar Financial, is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 924.00 in Flagstar Financial, on November 3, 2024 and sell it today you would earn a total of 259.00 from holding Flagstar Financial, or generate 28.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Flagstar Financial,
Performance |
| Timeline |
| Hooker Furniture |
| Flagstar Financial, |
Hooker Furniture and Flagstar Financial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Flagstar Financial,
The main advantage of trading using opposite Hooker Furniture and Flagstar Financial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Flagstar Financial, 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 Flagstar Financial, will offset losses from the drop in Flagstar Financial,'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 |
| Flagstar Financial, vs. US Bancorp | Flagstar Financial, vs. Truist Financial Corp | Flagstar Financial, vs. Fifth Third Bancorp | Flagstar Financial, vs. KeyCorp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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