Correlation Between KROGER and Hooker Furniture
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By analyzing existing cross correlation between KROGER 37 percent and Hooker Furniture, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and Hooker Furniture.
Diversification Opportunities for KROGER and Hooker Furniture
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between KROGER and Hooker is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 37 percent and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and KROGER 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 KROGER 37 percent 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 KROGER i.e., KROGER and Hooker Furniture go up and down completely randomly.
Pair Corralation between KROGER and Hooker Furniture
Assuming the 90 days trading horizon KROGER is expected to generate 12.39 times less return on investment than Hooker Furniture. But when comparing it to its historical volatility, KROGER 37 percent is 5.57 times less risky than Hooker Furniture. It trades about 0.01 of its potential returns per unit of risk. Hooker Furniture is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,623 in Hooker Furniture on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Hooker Furniture or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
KROGER 37 percent vs. Hooker Furniture
Performance |
| Timeline |
| KROGER 37 percent |
| Hooker Furniture |
KROGER and Hooker Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KROGER and Hooker Furniture
The main advantage of trading using opposite KROGER and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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.| KROGER vs. Hooker Furniture | KROGER vs. Franklin Street Properties | KROGER vs. Luxfer Holdings PLC | KROGER vs. Boston Properties |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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