Correlation Between Social Media and Hooker Furniture
Can any of the company-specific risk be diversified away by investing in both Social Media 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 Social Media and Hooker Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Social Media Venture and Hooker Furniture, you can compare the effects of market volatilities on Social Media 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 Social Media with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Social Media and Hooker Furniture.
Diversification Opportunities for Social Media and Hooker Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Social and Hooker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Social Media Venture and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and Social Media 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 Social Media Venture 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 Social Media i.e., Social Media and Hooker Furniture go up and down completely randomly.
Pair Corralation between Social Media and Hooker Furniture
If you would invest 1,659 in Hooker Furniture on September 5, 2024 and sell it today you would earn a total of 160.00 from holding Hooker Furniture or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Social Media Venture vs. Hooker Furniture
Performance |
| Timeline |
| Social Media Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hooker Furniture |
Social Media and Hooker Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Social Media and Hooker Furniture
The main advantage of trading using opposite Social Media and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Social Media 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.| Social Media vs. Hooker Furniture | Social Media vs. Mangazeya Mining | Social Media vs. Western Sierra Mining | Social Media vs. Vindicator Silver Lead Mining |
| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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