Correlation Between Hooker Furniture and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and WiMi Hologram at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hooker Furniture and WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and WiMi Hologram Cloud, you can compare the effects of market volatilities on Hooker Furniture and WiMi Hologram 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 WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and WiMi Hologram.
Diversification Opportunities for Hooker Furniture and WiMi Hologram
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hooker and WiMi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud 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 WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and WiMi Hologram go up and down completely randomly.
Pair Corralation between Hooker Furniture and WiMi Hologram
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.98 times more return on investment than WiMi Hologram. However, Hooker Furniture is 1.02 times less risky than WiMi Hologram. It trades about 0.23 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about -0.04 per unit of risk. If you would invest 1,626 in Hooker Furniture on September 2, 2024 and sell it today you would earn a total of 247.00 from holding Hooker Furniture or generate 15.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. WiMi Hologram Cloud
Performance |
| Timeline |
| Hooker Furniture |
| WiMi Hologram Cloud |
Hooker Furniture and WiMi Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and WiMi Hologram
The main advantage of trading using opposite Hooker Furniture and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, WiMi Hologram 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 WiMi Hologram will offset losses from the drop in WiMi Hologram's long position.| Hooker Furniture vs. Willis Lease Finance | Hooker Furniture vs. Rocky Brands | Hooker Furniture vs. First Business Financial |
| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |