Correlation Between Hooker Furniture and 257867AG6
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By analyzing existing cross correlation between Hooker Furniture and RRD 6625 15 APR 29, you can compare the effects of market volatilities on Hooker Furniture and 257867AG6 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 257867AG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and 257867AG6.
Diversification Opportunities for Hooker Furniture and 257867AG6
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hooker and 257867AG6 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and RRD 6625 15 APR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RRD 6625 15 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 257867AG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RRD 6625 15 has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and 257867AG6 go up and down completely randomly.
Pair Corralation between Hooker Furniture and 257867AG6
Given the investment horizon of 90 days Hooker Furniture is expected to generate 1.12 times more return on investment than 257867AG6. However, Hooker Furniture is 1.12 times more volatile than RRD 6625 15 APR 29. It trades about 0.2 of its potential returns per unit of risk. RRD 6625 15 APR 29 is currently generating about -0.09 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 | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Hooker Furniture vs. RRD 6625 15 APR 29
Performance |
| Timeline |
| Hooker Furniture |
| RRD 6625 15 |
Hooker Furniture and 257867AG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and 257867AG6
The main advantage of trading using opposite Hooker Furniture and 257867AG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, 257867AG6 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 257867AG6 will offset losses from the drop in 257867AG6'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 |
| 257867AG6 vs. AEP TEX INC | 257867AG6 vs. US BANK NATIONAL | 257867AG6 vs. MetLife | 257867AG6 vs. Brera Holdings PLC |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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