Correlation Between Hooker Furniture and LOCKHEED
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By analyzing existing cross correlation between Hooker Furniture and LOCKHEED MARTIN P, you can compare the effects of market volatilities on Hooker Furniture and LOCKHEED 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 LOCKHEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and LOCKHEED.
Diversification Opportunities for Hooker Furniture and LOCKHEED
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hooker and LOCKHEED is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and LOCKHEED MARTIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOCKHEED MARTIN 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 LOCKHEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOCKHEED MARTIN P has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and LOCKHEED go up and down completely randomly.
Pair Corralation between Hooker Furniture and LOCKHEED
Given the investment horizon of 90 days Hooker Furniture is expected to generate 2.51 times more return on investment than LOCKHEED. However, Hooker Furniture is 2.51 times more volatile than LOCKHEED MARTIN P. It trades about 0.02 of its potential returns per unit of risk. LOCKHEED MARTIN P is currently generating about -0.16 per unit of risk. If you would invest 1,667 in Hooker Furniture on September 15, 2024 and sell it today you would earn a total of 26.00 from holding Hooker Furniture or generate 1.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
Hooker Furniture vs. LOCKHEED MARTIN P
Performance |
Timeline |
Hooker Furniture |
LOCKHEED MARTIN P |
Hooker Furniture and LOCKHEED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hooker Furniture and LOCKHEED
The main advantage of trading using opposite Hooker Furniture and LOCKHEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, LOCKHEED 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 LOCKHEED will offset losses from the drop in LOCKHEED's long position.Hooker Furniture vs. Natuzzi SpA | Hooker Furniture vs. Hamilton Beach Brands | Hooker Furniture vs. La Z Boy Incorporated | Hooker Furniture vs. MasterBrand |
LOCKHEED vs. Hooker Furniture | LOCKHEED vs. Ryman Hospitality Properties | LOCKHEED vs. LGI Homes | LOCKHEED vs. BJs Restaurants |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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