Correlation Between Hooker Furniture and Forsys Metals
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Forsys Metals 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 Forsys Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Forsys Metals Corp, you can compare the effects of market volatilities on Hooker Furniture and Forsys Metals 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 Forsys Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Forsys Metals.
Diversification Opportunities for Hooker Furniture and Forsys Metals
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hooker and Forsys is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Forsys Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forsys Metals Corp 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 Forsys Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forsys Metals Corp has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Forsys Metals go up and down completely randomly.
Pair Corralation between Hooker Furniture and Forsys Metals
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Forsys Metals. But the stock apears to be less risky and, when comparing its historical volatility, Hooker Furniture is 1.9 times less risky than Forsys Metals. The stock trades about -0.06 of its potential returns per unit of risk. The Forsys Metals Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Forsys Metals Corp on November 3, 2024 and sell it today you would lose (35.00) from holding Forsys Metals Corp or give up 48.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hooker Furniture vs. Forsys Metals Corp
Performance |
| Timeline |
| Hooker Furniture |
| Forsys Metals Corp |
Hooker Furniture and Forsys Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Forsys Metals
The main advantage of trading using opposite Hooker Furniture and Forsys Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Forsys Metals 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 Forsys Metals will offset losses from the drop in Forsys Metals' long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
| Forsys Metals vs. Lotus Resources Limited | Forsys Metals vs. Namibia Critical Metals | Forsys Metals vs. Skyharbour Resources | Forsys Metals vs. Pasinex Resources Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |