Correlation Between Hooker Furniture and Tokyu REIT
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Tokyu REIT 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 Tokyu REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Tokyu REIT, you can compare the effects of market volatilities on Hooker Furniture and Tokyu REIT 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 Tokyu REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Tokyu REIT.
Diversification Opportunities for Hooker Furniture and Tokyu REIT
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hooker and Tokyu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Tokyu REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyu REIT 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 Tokyu REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyu REIT has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Tokyu REIT go up and down completely randomly.
Pair Corralation between Hooker Furniture and Tokyu REIT
If you would invest 1,695 in Hooker Furniture on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Hooker Furniture or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Hooker Furniture vs. Tokyu REIT
Performance |
| Timeline |
| Hooker Furniture |
| Tokyu REIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hooker Furniture and Tokyu REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Tokyu REIT
The main advantage of trading using opposite Hooker Furniture and Tokyu REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Tokyu REIT 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 Tokyu REIT will offset losses from the drop in Tokyu REIT'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 |
| Tokyu REIT vs. Coursera | Tokyu REIT vs. Ihuman Inc | Tokyu REIT vs. Datadog | Tokyu REIT vs. Uber Technologies |
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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