Correlation Between KROGER and HNI Corp
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By analyzing existing cross correlation between KROGER CO and HNI Corp, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and HNI Corp.
Diversification Opportunities for KROGER and HNI Corp
Very good diversification
The 3 months correlation between KROGER and HNI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding KROGER CO and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp 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 CO 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 KROGER i.e., KROGER and HNI Corp go up and down completely randomly.
Pair Corralation between KROGER and HNI Corp
Assuming the 90 days trading horizon KROGER CO is expected to under-perform the HNI Corp. In addition to that, KROGER is 1.26 times more volatile than HNI Corp. It trades about -0.1 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.41 per unit of volatility. If you would invest 4,898 in HNI Corp on September 1, 2024 and sell it today you would earn a total of 767.00 from holding HNI Corp or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
KROGER CO vs. HNI Corp
Performance |
| Timeline |
| KROGER CO |
| HNI Corp |
KROGER and HNI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KROGER and HNI Corp
The main advantage of trading using opposite KROGER and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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.| KROGER vs. Simpson Manufacturing | KROGER vs. Thai Beverage PCL | KROGER vs. SNDL Inc | KROGER vs. Parker Hannifin |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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