Correlation Between XChange TECINC and HNI Corp
Can any of the company-specific risk be diversified away by investing in both XChange TECINC and HNI Corp 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 XChange TECINC and HNI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XChange TECINC and HNI Corp, you can compare the effects of market volatilities on XChange TECINC 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 XChange TECINC with a short position of HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of XChange TECINC and HNI Corp.
Diversification Opportunities for XChange TECINC and HNI Corp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XChange and HNI is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding XChange TECINC and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp and XChange TECINC 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 XChange TECINC 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 XChange TECINC i.e., XChange TECINC and HNI Corp go up and down completely randomly.
Pair Corralation between XChange TECINC and HNI Corp
Considering the 90-day investment horizon XChange TECINC is expected to under-perform the HNI Corp. In addition to that, XChange TECINC is 9.96 times more volatile than HNI Corp. It trades about -0.02 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.13 per unit of volatility. If you would invest 2,569 in HNI Corp on August 31, 2024 and sell it today you would earn a total of 3,096 from holding HNI Corp or generate 120.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XChange TECINC vs. HNI Corp
Performance |
| Timeline |
| XChange TECINC |
| HNI Corp |
XChange TECINC and HNI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XChange TECINC and HNI Corp
The main advantage of trading using opposite XChange TECINC and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XChange TECINC 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.| XChange TECINC vs. Asure Software | XChange TECINC vs. Arrow Electronics | XChange TECINC vs. Park Ohio Holdings | XChange TECINC vs. Valneva SE ADR |
| HNI Corp vs. Acco Brands | HNI Corp vs. Acacia Research | HNI Corp vs. Steelcase | HNI Corp vs. International Paper |
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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