Correlation Between Hooker Furniture and Sanyo Special
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Sanyo Special 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 Sanyo Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Sanyo Special Steel, you can compare the effects of market volatilities on Hooker Furniture and Sanyo Special 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 Sanyo Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Sanyo Special.
Diversification Opportunities for Hooker Furniture and Sanyo Special
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hooker and Sanyo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Sanyo Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanyo Special Steel 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 Sanyo Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanyo Special Steel has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Sanyo Special go up and down completely randomly.
Pair Corralation between Hooker Furniture and Sanyo Special
If you would invest 1,808 in Hooker Furniture on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Hooker Furniture or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Hooker Furniture vs. Sanyo Special Steel
Performance |
| Timeline |
| Hooker Furniture |
| Sanyo Special Steel |
Hooker Furniture and Sanyo Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Sanyo Special
The main advantage of trading using opposite Hooker Furniture and Sanyo Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Sanyo Special 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 Sanyo Special will offset losses from the drop in Sanyo Special's long position.| Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands | Hooker Furniture vs. La Z Boy Incorporated |
| Sanyo Special vs. Legacy Education | Sanyo Special vs. Apple Inc | Sanyo Special vs. NVIDIA | Sanyo Special vs. Microsoft |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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