Correlation Between HNI Corp and FUJIFILM Holdings

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

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

Diversification Opportunities for HNI Corp and FUJIFILM Holdings

0.34

Correlation Coefficient

HNI Corp  FUJIFILM Holdings

Weak diversification

The 3 months correlation between HNI and FUJIFILM is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and FUJIFILM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings Corp 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 FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings Corp has no effect on the direction of HNI Corp i.e., HNI Corp and FUJIFILM Holdings go up and down completely randomly.

Pair Corralation between HNI Corp and FUJIFILM Holdings

If you would invest  5,861  in FUJIFILM Holdings Corp on October 9, 2024 and sell it today you would earn a total of  0.00  from holding FUJIFILM Holdings Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	2.56%
Values	Daily Returns

HNI Corp  vs.  FUJIFILM Holdings Corp

HNI Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HNI Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

FUJIFILM Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FUJIFILM Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, FUJIFILM Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HNI Corp and FUJIFILM Holdings

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

The idea behind HNI Corp and FUJIFILM Holdings Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.