Correlation Between MillerKnoll and Ethan Allen
Can any of the company-specific risk be diversified away by investing in both MillerKnoll and Ethan Allen 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 MillerKnoll and Ethan Allen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MillerKnoll and Ethan Allen Interiors, you can compare the effects of market volatilities on MillerKnoll and Ethan Allen 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 MillerKnoll with a short position of Ethan Allen. Check out your portfolio center. Please also check ongoing floating volatility patterns of MillerKnoll and Ethan Allen.
Diversification Opportunities for MillerKnoll and Ethan Allen
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MillerKnoll and Ethan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding MillerKnoll and Ethan Allen Interiors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethan Allen Interiors and MillerKnoll 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 MillerKnoll are associated (or correlated) with Ethan Allen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethan Allen Interiors has no effect on the direction of MillerKnoll i.e., MillerKnoll and Ethan Allen go up and down completely randomly.
Pair Corralation between MillerKnoll and Ethan Allen
Given the investment horizon of 90 days MillerKnoll is expected to under-perform the Ethan Allen. In addition to that, MillerKnoll is 1.4 times more volatile than Ethan Allen Interiors. It trades about -0.05 of its total potential returns per unit of risk. Ethan Allen Interiors is currently generating about 0.02 per unit of volatility. If you would invest 3,019 in Ethan Allen Interiors on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Ethan Allen Interiors or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MillerKnoll vs. Ethan Allen Interiors
Performance |
| Timeline |
| MillerKnoll |
| Ethan Allen Interiors |
MillerKnoll and Ethan Allen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MillerKnoll and Ethan Allen
The main advantage of trading using opposite MillerKnoll and Ethan Allen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MillerKnoll position performs unexpectedly, Ethan Allen 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 Ethan Allen will offset losses from the drop in Ethan Allen's long position.| MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. Ethan Allen Interiors | MillerKnoll vs. Natuzzi SpA | MillerKnoll vs. Flexsteel Industries |
| Ethan Allen vs. Viomi Technology ADR | Ethan Allen vs. Energy Focu | Ethan Allen vs. Flexsteel Industries | Ethan Allen vs. FGI 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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