Correlation Between Hooker Furniture and Seaport Entertainment
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Seaport Entertainment 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 Hooker Furniture and Seaport Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Seaport Entertainment Group, you can compare the effects of market volatilities on Hooker Furniture and Seaport Entertainment 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 Hooker Furniture with a short position of Seaport Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Seaport Entertainment.
Diversification Opportunities for Hooker Furniture and Seaport Entertainment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hooker and Seaport is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Seaport Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaport Entertainment and Hooker Furniture 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 Hooker Furniture are associated (or correlated) with Seaport Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaport Entertainment has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Seaport Entertainment go up and down completely randomly.
Pair Corralation between Hooker Furniture and Seaport Entertainment
Given the investment horizon of 90 days Hooker Furniture is expected to generate 0.72 times more return on investment than Seaport Entertainment. However, Hooker Furniture is 1.39 times less risky than Seaport Entertainment. It trades about -0.18 of its potential returns per unit of risk. Seaport Entertainment Group is currently generating about -0.15 per unit of risk. If you would invest 1,349 in Hooker Furniture on December 28, 2024 and sell it today you would lose (268.00) from holding Hooker Furniture or give up 19.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hooker Furniture vs. Seaport Entertainment Group
Performance |
Timeline |
Hooker Furniture |
Seaport Entertainment |
Hooker Furniture and Seaport Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hooker Furniture and Seaport Entertainment
The main advantage of trading using opposite Hooker Furniture and Seaport Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Seaport Entertainment 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 Seaport Entertainment will offset losses from the drop in Seaport Entertainment's long position.Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands |
Seaport Entertainment vs. ARIA Wireless Systems | Seaport Entertainment vs. Hudson Pacific Properties | Seaport Entertainment vs. Boston Properties | Seaport Entertainment vs. Lincoln Electric Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |