Correlation Between Hooker Furniture and Pinterest
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Pinterest, you can compare the effects of market volatilities on Hooker Furniture and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Pinterest.
Diversification Opportunities for Hooker Furniture and Pinterest
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hooker and Pinterest is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Pinterest go up and down completely randomly.
Pair Corralation between Hooker Furniture and Pinterest
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Pinterest. In addition to that, Hooker Furniture is 1.08 times more volatile than Pinterest. It trades about -0.06 of its total potential returns per unit of risk. Pinterest is currently generating about -0.02 per unit of volatility. If you would invest 4,083 in Pinterest on November 3, 2024 and sell it today you would lose (787.00) from holding Pinterest or give up 19.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Pinterest
Performance |
| Timeline |
| Hooker Furniture |
Hooker Furniture and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Pinterest
The main advantage of trading using opposite Hooker Furniture and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest'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 |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |