Correlation Between 58013MFC3 and Hooker Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between MCDONALDS P MEDIUM and Hooker Furniture, you can compare the effects of market volatilities on 58013MFC3 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 58013MFC3 with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58013MFC3 and Hooker Furniture.
Diversification Opportunities for 58013MFC3 and Hooker Furniture
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 58013MFC3 and Hooker is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MCDONALDS P MEDIUM and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and 58013MFC3 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 MCDONALDS P MEDIUM 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 58013MFC3 i.e., 58013MFC3 and Hooker Furniture go up and down completely randomly.
Pair Corralation between 58013MFC3 and Hooker Furniture
Assuming the 90 days trading horizon MCDONALDS P MEDIUM is expected to generate 17.8 times more return on investment than Hooker Furniture. However, 58013MFC3 is 17.8 times more volatile than Hooker Furniture. It trades about 0.04 of its potential returns per unit of risk. Hooker Furniture is currently generating about 0.02 per unit of risk. If you would invest 9,314 in MCDONALDS P MEDIUM on September 5, 2024 and sell it today you would lose (1,050) from holding MCDONALDS P MEDIUM or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.53% |
| Values | Daily Returns |
MCDONALDS P MEDIUM vs. Hooker Furniture
Performance |
| Timeline |
| MCDONALDS P MEDIUM |
| Hooker Furniture |
58013MFC3 and Hooker Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 58013MFC3 and Hooker Furniture
The main advantage of trading using opposite 58013MFC3 and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58013MFC3 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.| 58013MFC3 vs. Stepan Company | 58013MFC3 vs. Hafnia Limited | 58013MFC3 vs. Apogee Enterprises | 58013MFC3 vs. JD Sports Fashion |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |