Correlation Between Hooker Furniture and HG Holdings
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and HG Holdings 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 HG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and HG Holdings, you can compare the effects of market volatilities on Hooker Furniture and HG Holdings 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 HG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and HG Holdings.
Diversification Opportunities for Hooker Furniture and HG Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hooker and STLY is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and HG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HG Holdings 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 HG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HG Holdings has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and HG Holdings go up and down completely randomly.
Pair Corralation between Hooker Furniture and HG Holdings
If you would invest 1,659 in Hooker Furniture on September 3, 2024 and sell it today you would earn a total of 214.00 from holding Hooker Furniture or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Hooker Furniture vs. HG Holdings
Performance |
| Timeline |
| Hooker Furniture |
| HG Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hooker Furniture and HG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and HG Holdings
The main advantage of trading using opposite Hooker Furniture and HG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, HG Holdings 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 HG Holdings will offset losses from the drop in HG Holdings' long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
| HG Holdings vs. Hooker Furniture | HG Holdings vs. Marine Products | HG Holdings vs. United Fire Group | HG Holdings vs. Bassett Furniture 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |