Correlation Between HNI Corp and SYN Prop

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

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

Diversification Opportunities for HNI Corp and SYN Prop

-0.71

Correlation Coefficient

HNI Corp  SYN Prop

Pay attention - limited upside

The 3 months correlation between HNI and SYN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and SYN prop e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN prop e 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 SYN Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN prop e has no effect on the direction of HNI Corp i.e., HNI Corp and SYN Prop go up and down completely randomly.

Pair Corralation between HNI Corp and SYN Prop

Considering the 90-day investment horizon HNI Corp is expected to under-perform the SYN Prop. But the stock apears to be less risky and, when comparing its historical volatility, HNI Corp is 5.82 times less risky than SYN Prop. The stock trades about -0.17 of its potential returns per unit of risk. The SYN prop e is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  288.00  in SYN prop e on December 17, 2024 and sell it today you would earn a total of  238.00  from holding SYN prop e or generate 82.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.75%
Values	Daily Returns

HNI Corp  vs.  SYN prop e

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.

SYN prop e

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SYN prop e are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, SYN Prop showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HNI Corp and SYN Prop

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

The idea behind HNI Corp and SYN prop e 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.