Correlation Between Hooker Furniture and Astronics
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Astronics 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 Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hooker Furniture and Astronics, you can compare the effects of market volatilities on Hooker Furniture and Astronics 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 Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Astronics.
Diversification Opportunities for Hooker Furniture and Astronics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hooker and Astronics is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics 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 Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Astronics go up and down completely randomly.
Pair Corralation between Hooker Furniture and Astronics
Given the investment horizon of 90 days Hooker Furniture is expected to generate 2.56 times less return on investment than Astronics. But when comparing it to its historical volatility, Hooker Furniture is 1.14 times less risky than Astronics. It trades about 0.07 of its potential returns per unit of risk. Astronics is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,868 in Astronics on September 5, 2025 and sell it today you would earn a total of 1,304 from holding Astronics or generate 33.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Astronics
Performance |
| Timeline |
| Hooker Furniture |
| Astronics |
Hooker Furniture and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Astronics
The main advantage of trading using opposite Hooker Furniture and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Astronics 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 Astronics will offset losses from the drop in Astronics' long position.| Hooker Furniture vs. Tianjin Capital Environmental | Hooker Furniture vs. Universal Music Group | Hooker Furniture vs. Zoom Video Communications | Hooker Furniture vs. BlueScope Steel Ltd |
| Astronics vs. Haier Smart Home | Astronics vs. Hooker Furniture | Astronics vs. Amer Sports, | Astronics vs. TRI Pointe Homes |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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