Correlation Between Hooker Furniture and MICROSOFT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hooker Furniture and MICROSOFT PORATION, you can compare the effects of market volatilities on Hooker Furniture and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and MICROSOFT.
Diversification Opportunities for Hooker Furniture and MICROSOFT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hooker and MICROSOFT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and MICROSOFT go up and down completely randomly.
Pair Corralation between Hooker Furniture and MICROSOFT
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the MICROSOFT. But the stock apears to be less risky and, when comparing its historical volatility, Hooker Furniture is 1.63 times less risky than MICROSOFT. The stock trades about -0.19 of its potential returns per unit of risk. The MICROSOFT PORATION is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,883 in MICROSOFT PORATION on October 20, 2024 and sell it today you would earn a total of 477.00 from holding MICROSOFT PORATION or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hooker Furniture vs. MICROSOFT PORATION
Performance |
| Timeline |
| Hooker Furniture |
| MICROSOFT PORATION |
Hooker Furniture and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and MICROSOFT
The main advantage of trading using opposite Hooker Furniture and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT'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 |
| MICROSOFT vs. Diageo PLC ADR | MICROSOFT vs. Aduro Clean Technologies | MICROSOFT vs. Keurig Dr Pepper | MICROSOFT vs. Crimson Wine |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |