Correlation Between Hooker Furniture and Saia
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Saia 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 Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Saia Inc, you can compare the effects of market volatilities on Hooker Furniture and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Saia.
Diversification Opportunities for Hooker Furniture and Saia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hooker and Saia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Saia go up and down completely randomly.
Pair Corralation between Hooker Furniture and Saia
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Saia. In addition to that, Hooker Furniture is 1.29 times more volatile than Saia Inc. It trades about -0.27 of its total potential returns per unit of risk. Saia Inc is currently generating about -0.14 per unit of volatility. If you would invest 55,727 in Saia Inc on October 26, 2024 and sell it today you would lose (6,777) from holding Saia Inc or give up 12.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Saia Inc
Performance |
| Timeline |
| Hooker Furniture |
| Saia Inc |
Hooker Furniture and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Saia
The main advantage of trading using opposite Hooker Furniture and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia'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 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |