Correlation Between Hooker Furniture and JV SPAC
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and JV SPAC 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 JV SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and JV SPAC Acquisition, you can compare the effects of market volatilities on Hooker Furniture and JV SPAC 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 JV SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and JV SPAC.
Diversification Opportunities for Hooker Furniture and JV SPAC
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hooker and JVSA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and JV SPAC Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JV SPAC Acquisition 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 JV SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JV SPAC Acquisition has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and JV SPAC go up and down completely randomly.
Pair Corralation between Hooker Furniture and JV SPAC
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the JV SPAC. In addition to that, Hooker Furniture is 14.52 times more volatile than JV SPAC Acquisition. It trades about -0.19 of its total potential returns per unit of risk. JV SPAC Acquisition is currently generating about 0.36 per unit of volatility. If you would invest 1,042 in JV SPAC Acquisition on October 20, 2024 and sell it today you would earn a total of 10.00 from holding JV SPAC Acquisition or generate 0.96% 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. JV SPAC Acquisition
Performance |
| Timeline |
| Hooker Furniture |
| JV SPAC Acquisition |
Hooker Furniture and JV SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and JV SPAC
The main advantage of trading using opposite Hooker Furniture and JV SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, JV SPAC 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 JV SPAC will offset losses from the drop in JV SPAC'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 |
| JV SPAC vs. Chester Mining | JV SPAC vs. Planet Fitness | JV SPAC vs. Playtika Holding Corp | JV SPAC vs. Allegion PLC |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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