Correlation Between HNI Corp and BGC

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

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

Diversification Opportunities for HNI Corp and BGC

-0.05

Correlation Coefficient

HNI Corp  BGC

Good diversification

The 3 months correlation between HNI and BGC is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and HNI 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 HNI Corp are associated (or correlated) with BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of HNI Corp i.e., HNI Corp and BGC go up and down completely randomly.

Pair Corralation between HNI Corp and BGC

Considering the 90-day investment horizon HNI Corp is expected to under-perform the BGC. But the stock apears to be less risky and, when comparing its historical volatility, HNI Corp is 1.3 times less risky than BGC. The stock trades about -0.19 of its potential returns per unit of risk. The BGC Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  904.00  in BGC Group on December 16, 2024 and sell it today you would lose (23.00) from holding BGC Group or give up 2.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

HNI Corp  vs.  BGC Group

HNI Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days HNI Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

BGC Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days BGC Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, BGC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HNI Corp and BGC

The main advantage of trading using opposite HNI Corp and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, BGC 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 BGC will offset losses from the drop in BGC's long position.

The idea behind HNI Corp and BGC Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.