Correlation Between Hooker Furniture and NISOURCE
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By analyzing existing cross correlation between Hooker Furniture and NISOURCE FIN P, you can compare the effects of market volatilities on Hooker Furniture and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and NISOURCE.
Diversification Opportunities for Hooker Furniture and NISOURCE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hooker and NISOURCE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and NISOURCE go up and down completely randomly.
Pair Corralation between Hooker Furniture and NISOURCE
Given the investment horizon of 90 days Hooker Furniture is expected to under-perform the NISOURCE. In addition to that, Hooker Furniture is 3.19 times more volatile than NISOURCE FIN P. It trades about -0.05 of its total potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.25 per unit of volatility. If you would invest 10,348 in NISOURCE FIN P on September 23, 2024 and sell it today you would earn a total of 315.00 from holding NISOURCE FIN P or generate 3.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 25.58% |
Values | Daily Returns |
Hooker Furniture vs. NISOURCE FIN P
Performance |
Timeline |
Hooker Furniture |
NISOURCE FIN P |
Hooker Furniture and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hooker Furniture and NISOURCE
The main advantage of trading using opposite Hooker Furniture and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.The idea behind Hooker Furniture and NISOURCE FIN P 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.NISOURCE vs. Saia Inc | NISOURCE vs. Ryanair Holdings PLC | NISOURCE vs. Getty Copper | NISOURCE vs. Hooker Furniture |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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