Correlation Between Hooker Furniture and MARKEL
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By analyzing existing cross correlation between Hooker Furniture and MARKEL P 43, you can compare the effects of market volatilities on Hooker Furniture and MARKEL 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 MARKEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and MARKEL.
Diversification Opportunities for Hooker Furniture and MARKEL
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hooker and MARKEL is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and MARKEL P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKEL P 43 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 MARKEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKEL P 43 has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and MARKEL go up and down completely randomly.
Pair Corralation between Hooker Furniture and MARKEL
Given the investment horizon of 90 days Hooker Furniture is expected to generate 254.5 times less return on investment than MARKEL. But when comparing it to its historical volatility, Hooker Furniture is 50.08 times less risky than MARKEL. It trades about 0.02 of its potential returns per unit of risk. MARKEL P 43 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,190 in MARKEL P 43 on September 5, 2024 and sell it today you would earn a total of 62.00 from holding MARKEL P 43 or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.23% |
| Values | Daily Returns |
Hooker Furniture vs. MARKEL P 43
Performance |
| Timeline |
| Hooker Furniture |
| MARKEL P 43 |
Hooker Furniture and MARKEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and MARKEL
The main advantage of trading using opposite Hooker Furniture and MARKEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, MARKEL 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 MARKEL will offset losses from the drop in MARKEL'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 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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