Correlation Between Hooker Furniture and LadRx
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and LadRx 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 LadRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and LadRx, you can compare the effects of market volatilities on Hooker Furniture and LadRx 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 LadRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and LadRx.
Diversification Opportunities for Hooker Furniture and LadRx
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hooker and LadRx is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and LadRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LadRx 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 LadRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LadRx has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and LadRx go up and down completely randomly.
Pair Corralation between Hooker Furniture and LadRx
If you would invest 1,659 in Hooker Furniture on September 5, 2024 and sell it today you would earn a total of 160.00 from holding Hooker Furniture or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hooker Furniture vs. LadRx
Performance |
| Timeline |
| Hooker Furniture |
| LadRx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hooker Furniture and LadRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and LadRx
The main advantage of trading using opposite Hooker Furniture and LadRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, LadRx 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 LadRx will offset losses from the drop in LadRx'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 |
| LadRx vs. JBG SMITH Properties | LadRx vs. enVVeno Medical Corp | LadRx vs. Hooker Furniture | LadRx vs. Live Ventures |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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