Correlation Between Hooker Furniture and APPLE
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By analyzing existing cross correlation between Hooker Furniture and APPLE INC, you can compare the effects of market volatilities on Hooker Furniture and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and APPLE.
Diversification Opportunities for Hooker Furniture and APPLE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hooker and APPLE is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and APPLE go up and down completely randomly.
Pair Corralation between Hooker Furniture and APPLE
Given the investment horizon of 90 days Hooker Furniture is expected to generate 1.97 times more return on investment than APPLE. However, Hooker Furniture is 1.97 times more volatile than APPLE INC. It trades about 0.21 of its potential returns per unit of risk. APPLE INC is currently generating about 0.09 per unit of risk. If you would invest 1,637 in Hooker Furniture on August 24, 2024 and sell it today you would earn a total of 253.00 from holding Hooker Furniture or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Hooker Furniture vs. APPLE INC
Performance |
| Timeline |
| Hooker Furniture |
| APPLE INC |
Hooker Furniture and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and APPLE
The main advantage of trading using opposite Hooker Furniture and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.The idea behind Hooker Furniture and APPLE INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| APPLE vs. BioNTech SE | APPLE vs. Hooker Furniture | APPLE vs. Valneva SE ADR | APPLE vs. Delek Logistics Partners |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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