Correlation Between SECURITAS and HNI
Can any of the company-specific risk be diversified away by investing in both SECURITAS and HNI 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 SECURITAS and HNI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SECURITAS B and HNI Corporation, you can compare the effects of market volatilities on SECURITAS and HNI 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 SECURITAS with a short position of HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURITAS and HNI.
Diversification Opportunities for SECURITAS and HNI
Pay attention - limited upside
The 3 months correlation between SECURITAS and HNI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SECURITAS B and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation and SECURITAS 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 SECURITAS B are associated (or correlated) with HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of SECURITAS i.e., SECURITAS and HNI go up and down completely randomly.
Pair Corralation between SECURITAS and HNI
If you would invest 2,490 in HNI Corporation on September 4, 2024 and sell it today you would earn a total of 2,910 from holding HNI Corporation or generate 116.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
SECURITAS B vs. HNI Corp.
Performance |
| Timeline |
| SECURITAS B |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| HNI Corporation |
SECURITAS and HNI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURITAS and HNI
The main advantage of trading using opposite SECURITAS and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURITAS position performs unexpectedly, HNI 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 will offset losses from the drop in HNI's long position.| SECURITAS vs. AECOM TECHNOLOGY | SECURITAS vs. ADRIATIC METALS LS 013355 | SECURITAS vs. Sunny Optical Technology | SECURITAS vs. Ming Le Sports |
| HNI vs. Monster Beverage Corp | HNI vs. Gamma Communications plc | HNI vs. INTERSHOP Communications Aktiengesellschaft | HNI vs. Computershare Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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