Correlation Between Hooker Furniture and Nampak
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Nampak 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 Nampak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Nampak, you can compare the effects of market volatilities on Hooker Furniture and Nampak 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 Nampak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Nampak.
Diversification Opportunities for Hooker Furniture and Nampak
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hooker and Nampak is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Nampak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nampak 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 Nampak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nampak has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Nampak go up and down completely randomly.
Pair Corralation between Hooker Furniture and Nampak
If you would invest 1,250 in Nampak on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Nampak or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Hooker Furniture vs. Nampak
Performance |
| Timeline |
| Hooker Furniture |
| Nampak |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hooker Furniture and Nampak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Nampak
The main advantage of trading using opposite Hooker Furniture and Nampak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Nampak 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 Nampak will offset losses from the drop in Nampak'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 |
| Nampak vs. Nike Inc | Nampak vs. The Gap, | Nampak vs. Hooker Furniture | Nampak vs. Haverty Furniture Companies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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