Correlation Between Hooker Furniture and MillerKnoll
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and MillerKnoll 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 MillerKnoll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and MillerKnoll, you can compare the effects of market volatilities on Hooker Furniture and MillerKnoll 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 MillerKnoll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and MillerKnoll.
Diversification Opportunities for Hooker Furniture and MillerKnoll
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hooker and MillerKnoll is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and MillerKnoll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MillerKnoll 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 MillerKnoll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MillerKnoll has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and MillerKnoll go up and down completely randomly.
Pair Corralation between Hooker Furniture and MillerKnoll
Given the investment horizon of 90 days Hooker Furniture is expected to generate 1.72 times more return on investment than MillerKnoll. However, Hooker Furniture is 1.72 times more volatile than MillerKnoll. It trades about 0.18 of its potential returns per unit of risk. MillerKnoll is currently generating about 0.16 per unit of risk. If you would invest 1,605 in Hooker Furniture on August 29, 2024 and sell it today you would earn a total of 212.00 from holding Hooker Furniture or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. MillerKnoll
Performance |
| Timeline |
| Hooker Furniture |
| MillerKnoll |
Hooker Furniture and MillerKnoll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and MillerKnoll
The main advantage of trading using opposite Hooker Furniture and MillerKnoll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, MillerKnoll 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 MillerKnoll will offset losses from the drop in MillerKnoll's long position.| Hooker Furniture vs. Willis Lease Finance | Hooker Furniture vs. Rocky Brands | Hooker Furniture vs. First Business Financial |
| MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. Ethan Allen Interiors | MillerKnoll vs. Natuzzi SpA | MillerKnoll vs. Flexsteel Industries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |