Correlation Between Hooker Furniture and Tsuruha Holdings
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Tsuruha 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 Tsuruha 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 Tsuruha Holdings, you can compare the effects of market volatilities on Hooker Furniture and Tsuruha 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 Tsuruha Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Tsuruha Holdings.
Diversification Opportunities for Hooker Furniture and Tsuruha Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hooker and Tsuruha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Tsuruha Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsuruha 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 Tsuruha Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsuruha Holdings has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Tsuruha Holdings go up and down completely randomly.
Pair Corralation between Hooker Furniture and Tsuruha Holdings
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.25 times more return on investment than Tsuruha Holdings. However, Hooker Furniture is 4.01 times less risky than Tsuruha Holdings. It trades about 0.0 of its potential returns per unit of risk. Tsuruha Holdings is currently generating about -0.55 per unit of risk. If you would invest 1,966 in Hooker Furniture on September 12, 2024 and sell it today you would lose (301.00) from holding Hooker Furniture or give up 15.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.42% |
| Values | Daily Returns |
Hooker Furniture vs. Tsuruha Holdings
Performance |
| Timeline |
| Hooker Furniture |
| Tsuruha Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hooker Furniture and Tsuruha Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Tsuruha Holdings
The main advantage of trading using opposite Hooker Furniture and Tsuruha Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Tsuruha 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 Tsuruha Holdings will offset losses from the drop in Tsuruha 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 |
| Tsuruha Holdings vs. Evertz Technologies Limited | Tsuruha Holdings vs. Red Branch Technologies | Tsuruha Holdings vs. United Utilities Group | Tsuruha Holdings vs. Acm Research |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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