Correlation Between Mohawk Industries and MillerKnoll
Can any of the company-specific risk be diversified away by investing in both Mohawk Industries and MillerKnoll 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 Mohawk Industries and MillerKnoll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mohawk Industries and MillerKnoll, you can compare the effects of market volatilities on Mohawk Industries and MillerKnoll 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 Mohawk Industries with a short position of MillerKnoll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mohawk Industries and MillerKnoll.
Diversification Opportunities for Mohawk Industries and MillerKnoll
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mohawk and MillerKnoll is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mohawk Industries and MillerKnoll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MillerKnoll and Mohawk Industries 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 Mohawk Industries are associated (or correlated) with MillerKnoll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MillerKnoll has no effect on the direction of Mohawk Industries i.e., Mohawk Industries and MillerKnoll go up and down completely randomly.
Pair Corralation between Mohawk Industries and MillerKnoll
Considering the 90-day investment horizon Mohawk Industries is expected to generate 0.93 times more return on investment than MillerKnoll. However, Mohawk Industries is 1.08 times less risky than MillerKnoll. It trades about -0.07 of its potential returns per unit of risk. MillerKnoll is currently generating about -0.07 per unit of risk. If you would invest 15,084 in Mohawk Industries on November 2, 2024 and sell it today you would lose (2,435) from holding Mohawk Industries or give up 16.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mohawk Industries vs. MillerKnoll
Performance |
| Timeline |
| Mohawk Industries |
| MillerKnoll |
Mohawk Industries and MillerKnoll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mohawk Industries and MillerKnoll
The main advantage of trading using opposite Mohawk Industries and MillerKnoll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mohawk Industries position performs unexpectedly, MillerKnoll 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 MillerKnoll will offset losses from the drop in MillerKnoll's long position.| Mohawk Industries vs. Bassett Furniture Industries | Mohawk Industries vs. Ethan Allen Interiors | Mohawk Industries vs. Natuzzi SpA | Mohawk Industries vs. Flexsteel Industries |
| MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. Ethan Allen Interiors | MillerKnoll vs. Natuzzi SpA | MillerKnoll vs. Flexsteel Industries |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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