Correlation Between Hooker Furniture and Hudson Pacific
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Hudson Pacific 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 Hudson Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Hudson Pacific Properties, you can compare the effects of market volatilities on Hooker Furniture and Hudson Pacific 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 Hudson Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Hudson Pacific.
Diversification Opportunities for Hooker Furniture and Hudson Pacific
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hooker and Hudson is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Hudson Pacific Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Pacific Properties 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 Hudson Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Pacific Properties has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Hudson Pacific go up and down completely randomly.
Pair Corralation between Hooker Furniture and Hudson Pacific
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.81 times more return on investment than Hudson Pacific. However, Hooker Furniture is 1.24 times less risky than Hudson Pacific. It trades about 0.12 of its potential returns per unit of risk. Hudson Pacific Properties is currently generating about -0.09 per unit of risk. If you would invest 1,509 in Hooker Furniture on August 31, 2024 and sell it today you would earn a total of 354.00 from holding Hooker Furniture or generate 23.46% 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. Hudson Pacific Properties
Performance |
| Timeline |
| Hooker Furniture |
| Hudson Pacific Properties |
Hooker Furniture and Hudson Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Hudson Pacific
The main advantage of trading using opposite Hooker Furniture and Hudson Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Hudson Pacific 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 Hudson Pacific will offset losses from the drop in Hudson Pacific'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 |
| Hudson Pacific vs. Kilroy Realty Corp | Hudson Pacific vs. Highwoods Properties | Hudson Pacific vs. Cousins Properties Incorporated | Hudson Pacific vs. Piedmont Office Realty |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |