Correlation Between Hooker Furniture and Under Armour
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Under Armour 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 Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Under Armour C, you can compare the effects of market volatilities on Hooker Furniture and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Under Armour.
Diversification Opportunities for Hooker Furniture and Under Armour
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hooker and Under is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Under Armour go up and down completely randomly.
Pair Corralation between Hooker Furniture and Under Armour
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.53 times more return on investment than Under Armour. However, Hooker Furniture is 1.9 times less risky than Under Armour. It trades about 0.2 of its potential returns per unit of risk. Under Armour C is currently generating about 0.11 per unit of risk. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Under Armour C
Performance |
| Timeline |
| Hooker Furniture |
| Under Armour C |
Hooker Furniture and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Under Armour
The main advantage of trading using opposite Hooker Furniture and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour'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 |
| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |