Correlation Between Hooker Furniture and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Schibsted ASA 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 Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Schibsted ASA ADR, you can compare the effects of market volatilities on Hooker Furniture and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Schibsted ASA.
Diversification Opportunities for Hooker Furniture and Schibsted ASA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hooker and Schibsted is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Schibsted ASA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA ADR 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA ADR has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Schibsted ASA go up and down completely randomly.
Pair Corralation between Hooker Furniture and Schibsted ASA
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the Schibsted ASA. But the stock apears to be less risky and, when comparing its historical volatility, Hooker Furniture is 1.33 times less risky than Schibsted ASA. The stock trades about -0.32 of its potential returns per unit of risk. The Schibsted ASA ADR is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 3,387 in Schibsted ASA ADR on October 9, 2024 and sell it today you would lose (253.00) from holding Schibsted ASA ADR or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Schibsted ASA ADR
Performance |
| Timeline |
| Hooker Furniture |
| Schibsted ASA ADR |
Hooker Furniture and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Schibsted ASA
The main advantage of trading using opposite Hooker Furniture and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA'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 |
| Schibsted ASA vs. Acco Brands | Schibsted ASA vs. BK Technologies | Schibsted ASA vs. Pearson PLC ADR | Schibsted ASA vs. Hewlett Packard Enterprise |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |