Correlation Between United Parks and HNI Corp
Can any of the company-specific risk be diversified away by investing in both United Parks and HNI Corp 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 United Parks and HNI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parks Resorts and HNI Corp, you can compare the effects of market volatilities on United Parks and HNI Corp 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 United Parks with a short position of HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parks and HNI Corp.
Diversification Opportunities for United Parks and HNI Corp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and HNI is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Parks Resorts and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp and United Parks 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 United Parks Resorts are associated (or correlated) with HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of United Parks i.e., United Parks and HNI Corp go up and down completely randomly.
Pair Corralation between United Parks and HNI Corp
Given the investment horizon of 90 days United Parks is expected to generate 1.82 times less return on investment than HNI Corp. In addition to that, United Parks is 1.2 times more volatile than HNI Corp. It trades about 0.04 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.1 per unit of volatility. If you would invest 4,621 in HNI Corp on September 1, 2024 and sell it today you would earn a total of 1,044 from holding HNI Corp or generate 22.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Parks Resorts vs. HNI Corp
Performance |
| Timeline |
| United Parks Resorts |
| HNI Corp |
United Parks and HNI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parks and HNI Corp
The main advantage of trading using opposite United Parks and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parks position performs unexpectedly, HNI Corp 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 HNI Corp will offset losses from the drop in HNI Corp's long position.| United Parks vs. Cracker Barrel Old | United Parks vs. Cementos Pacasmayo SAA | United Parks vs. BJs Restaurants | United Parks vs. Flexible Solutions International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |