Correlation Between HNI Corp and HNI

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

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

Diversification Opportunities for HNI Corp and HNI

0.0

Correlation Coefficient

HNI Corp  HNI

Pay attention - limited upside

The 3 months correlation between HNI and HNI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation 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 HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of HNI Corp i.e., HNI Corp and HNI go up and down completely randomly.

Pair Corralation between HNI Corp and HNI

If you would invest (100.00) in HNI Corp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding HNI Corp or generate -100.0% return on investment over 90 days.

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

HNI Corp  vs.  HNI Corp.

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. In spite of comparatively stable basic indicators, HNI Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

HNI Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days HNI Corporation 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 nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with HNI Corp and HNI

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

The idea behind HNI Corp and HNI Corporation 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.