Correlation Between Hooker Furniture and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Jabil Circuit 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 Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Jabil Circuit, you can compare the effects of market volatilities on Hooker Furniture and Jabil Circuit 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 Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Jabil Circuit.
Diversification Opportunities for Hooker Furniture and Jabil Circuit
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hooker and Jabil is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit 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 Jabil Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Circuit has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Jabil Circuit go up and down completely randomly.
Pair Corralation between Hooker Furniture and Jabil Circuit
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Jabil Circuit. In addition to that, Hooker Furniture is 1.31 times more volatile than Jabil Circuit. It trades about -0.19 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.51 per unit of volatility. If you would invest 14,044 in Jabil Circuit on October 20, 2024 and sell it today you would earn a total of 2,246 from holding Jabil Circuit or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Jabil Circuit
Performance |
| Timeline |
| Hooker Furniture |
| Jabil Circuit |
Hooker Furniture and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Jabil Circuit
The main advantage of trading using opposite Hooker Furniture and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Jabil Circuit 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 Jabil Circuit will offset losses from the drop in Jabil Circuit'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 |
| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |