Correlation Between Connexus Corp and Hooker Furniture

Can any of the company-specific risk be diversified away by investing in both Connexus Corp and Hooker Furniture 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 Connexus Corp and Hooker Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Connexus Corp and Hooker Furniture, you can compare the effects of market volatilities on Connexus Corp 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 Connexus Corp with a short position of Hooker Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Connexus Corp and Hooker Furniture.

Diversification Opportunities for Connexus Corp and Hooker Furniture

0.0

Correlation Coefficient

Connexus Corp  Hooker Furniture

Pay attention - limited upside

The 3 months correlation between Connexus and Hooker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Connexus Corp and Hooker Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hooker Furniture and Connexus Corp 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 Connexus Corp 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 Connexus Corp i.e., Connexus Corp and Hooker Furniture go up and down completely randomly.

Pair Corralation between Connexus Corp and Hooker Furniture

If you would invest  1,751  in Hooker Furniture on September 17, 2024 and sell it today you would lose (32.50) from holding Hooker Furniture or give up 1.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Connexus Corp  vs.  Hooker Furniture

Connexus Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Connexus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Connexus Corp is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hooker Furniture

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hooker Furniture has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Hooker Furniture is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Connexus Corp and Hooker Furniture

The main advantage of trading using opposite Connexus Corp and Hooker Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Connexus Corp 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.

The idea behind Connexus Corp and Hooker Furniture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.