Correlation Between 06417XAP6 and HNI Corp

Can any of the company-specific risk be diversified away by investing in both 06417XAP6 and HNI Corp 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 06417XAP6 and HNI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BNS 485 01 FEB 30 and HNI Corp, you can compare the effects of market volatilities on 06417XAP6 and HNI Corp 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 06417XAP6 with a short position of HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06417XAP6 and HNI Corp.

Diversification Opportunities for 06417XAP6 and HNI Corp

-0.6

Correlation Coefficient

06417XAP6  HNI Corp

Excellent diversification

The 3 months correlation between 06417XAP6 and HNI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BNS 485 01 FEB 30 and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp and 06417XAP6 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 BNS 485 01 FEB 30 are associated (or correlated) with HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of 06417XAP6 i.e., 06417XAP6 and HNI Corp go up and down completely randomly.

Pair Corralation between 06417XAP6 and HNI Corp

Assuming the 90 days trading horizon BNS 485 01 FEB 30 is expected to under-perform the HNI Corp. But the bond apears to be less risky and, when comparing its historical volatility, BNS 485 01 FEB 30 is 5.09 times less risky than HNI Corp. The bond trades about -0.1 of its potential returns per unit of risk. The HNI Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5,177  in HNI Corp on September 4, 2024 and sell it today you would earn a total of  503.00  from holding HNI Corp or generate 9.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

BNS 485 01 FEB 30  vs.  HNI Corp

BNS 485 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BNS 485 01 FEB 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06417XAP6 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

HNI Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HNI Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, HNI Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with 06417XAP6 and HNI Corp

The main advantage of trading using opposite 06417XAP6 and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06417XAP6 position performs unexpectedly, HNI Corp 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 Corp will offset losses from the drop in HNI Corp's long position.

The idea behind BNS 485 01 FEB 30 and HNI 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.