Correlation Between Summit Environmental and Hooker Furniture
Can any of the company-specific risk be diversified away by investing in both Summit Environmental and Hooker Furniture 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 Summit Environmental and Hooker Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Environmental and Hooker Furniture, you can compare the effects of market volatilities on Summit Environmental and Hooker Furniture 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 Summit Environmental with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Hooker Furniture.
Diversification Opportunities for Summit Environmental and Hooker Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Hooker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and Summit Environmental 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 Summit Environmental are associated (or correlated) with Hooker Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hooker Furniture has no effect on the direction of Summit Environmental i.e., Summit Environmental and Hooker Furniture go up and down completely randomly.
Pair Corralation between Summit Environmental and Hooker Furniture
If you would invest 1,634 in Hooker Furniture on August 30, 2024 and sell it today you would earn a total of 229.00 from holding Hooker Furniture or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Environmental vs. Hooker Furniture
Performance |
| Timeline |
| Summit Environmental |
| Hooker Furniture |
Summit Environmental and Hooker Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Hooker Furniture
The main advantage of trading using opposite Summit Environmental and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental position performs unexpectedly, Hooker Furniture 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 Hooker Furniture will offset losses from the drop in Hooker Furniture's long position.| Summit Environmental vs. Silver Hammer Mining | Summit Environmental vs. Reyna Silver Corp | Summit Environmental vs. Guanajuato Silver | Summit Environmental vs. Silver One Resources |
| Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands | Hooker Furniture vs. La Z Boy Incorporated |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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