Correlation Between Hooker Furniture and CARPENTER
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By analyzing existing cross correlation between Hooker Furniture and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Hooker Furniture and CARPENTER 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 CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and CARPENTER.
Diversification Opportunities for Hooker Furniture and CARPENTER
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hooker and CARPENTER is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY 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 CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and CARPENTER go up and down completely randomly.
Pair Corralation between Hooker Furniture and CARPENTER
Given the investment horizon of 90 days Hooker Furniture is expected to generate 6.95 times more return on investment than CARPENTER. However, Hooker Furniture is 6.95 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.04 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.0 per unit of risk. If you would invest 1,678 in Hooker Furniture on September 1, 2024 and sell it today you would earn a total of 195.00 from holding Hooker Furniture or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hooker Furniture vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| Hooker Furniture |
| CARPENTER TECHNOLOGY |
Hooker Furniture and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and CARPENTER
The main advantage of trading using opposite Hooker Furniture and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER's long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Willis Lease Finance | Hooker Furniture vs. Rocky Brands | Hooker Furniture vs. First Business Financial |
| CARPENTER vs. AEP TEX INC | CARPENTER vs. US BANK NATIONAL | CARPENTER vs. Bank of America | CARPENTER vs. GE Aerospace |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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