Correlation Between Bassett Furniture and 09951LAA1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bassett Furniture Industries and BOOZ ALLEN HAMILTON, you can compare the effects of market volatilities on Bassett Furniture and 09951LAA1 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 Bassett Furniture with a short position of 09951LAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and 09951LAA1.
Diversification Opportunities for Bassett Furniture and 09951LAA1
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bassett and 09951LAA1 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and BOOZ ALLEN HAMILTON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOOZ ALLEN HAMILTON and Bassett Furniture 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 Bassett Furniture Industries are associated (or correlated) with 09951LAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOOZ ALLEN HAMILTON has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and 09951LAA1 go up and down completely randomly.
Pair Corralation between Bassett Furniture and 09951LAA1
Given the investment horizon of 90 days Bassett Furniture Industries is expected to under-perform the 09951LAA1. In addition to that, Bassett Furniture is 1.79 times more volatile than BOOZ ALLEN HAMILTON. It trades about -0.06 of its total potential returns per unit of risk. BOOZ ALLEN HAMILTON is currently generating about 0.03 per unit of volatility. If you would invest 9,597 in BOOZ ALLEN HAMILTON on October 7, 2024 and sell it today you would earn a total of 71.00 from holding BOOZ ALLEN HAMILTON or generate 0.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 68.29% |
Values | Daily Returns |
Bassett Furniture Industries vs. BOOZ ALLEN HAMILTON
Performance |
Timeline |
Bassett Furniture |
BOOZ ALLEN HAMILTON |
Bassett Furniture and 09951LAA1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bassett Furniture and 09951LAA1
The main advantage of trading using opposite Bassett Furniture and 09951LAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, 09951LAA1 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 09951LAA1 will offset losses from the drop in 09951LAA1's long position.Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
09951LAA1 vs. Chart Industries | 09951LAA1 vs. Kenon Holdings | 09951LAA1 vs. MYR Group | 09951LAA1 vs. Archrock |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Transaction History View history of all your transactions and understand their impact on performance |