Correlation Between Hooker Furniture and ALTRIA
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By analyzing existing cross correlation between Hooker Furniture and ALTRIA GROUP INC, you can compare the effects of market volatilities on Hooker Furniture and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and ALTRIA.
Diversification Opportunities for Hooker Furniture and ALTRIA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hooker and ALTRIA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and ALTRIA go up and down completely randomly.
Pair Corralation between Hooker Furniture and ALTRIA
Given the investment horizon of 90 days Hooker Furniture is expected to generate 1.63 times more return on investment than ALTRIA. However, Hooker Furniture is 1.63 times more volatile than ALTRIA GROUP INC. It trades about 0.13 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about -0.08 per unit of risk. If you would invest 1,509 in Hooker Furniture on September 3, 2024 and sell it today you would earn a total of 364.00 from holding Hooker Furniture or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. ALTRIA GROUP INC
Performance |
| Timeline |
| Hooker Furniture |
| ALTRIA GROUP INC |
Hooker Furniture and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and ALTRIA
The main advantage of trading using opposite Hooker Furniture and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA'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 |
| ALTRIA vs. Old Dominion Freight | ALTRIA vs. Zijin Mining Group | ALTRIA vs. Mangazeya Mining | ALTRIA vs. Hooker Furniture |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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