Correlation Between Hooker Furniture and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Hooker Furniture and Flutter 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 Flutter 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 Flutter Entertainment plc, you can compare the effects of market volatilities on Hooker Furniture and Flutter 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hooker Furniture and Flutter Entertainment.
Diversification Opportunities for Hooker Furniture and Flutter Entertainment
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hooker and Flutter is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hooker Furniture and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of Hooker Furniture i.e., Hooker Furniture and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Hooker Furniture and Flutter Entertainment
Given the investment horizon of 90 days Hooker Furniture is expected to generate 2.39 times more return on investment than Flutter Entertainment. However, Hooker Furniture is 2.39 times more volatile than Flutter Entertainment plc. It trades about 0.1 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.24 per unit of risk. If you would invest 877.00 in Hooker Furniture on April 23, 2025 and sell it today you would earn a total of 217.50 from holding Hooker Furniture or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hooker Furniture vs. Flutter Entertainment plc
Performance |
| Timeline |
| Hooker Furniture |
| Flutter Entertainment plc |
Hooker Furniture and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hooker Furniture and Flutter Entertainment
The main advantage of trading using opposite Hooker Furniture and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hooker Furniture position performs unexpectedly, Flutter 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Hooker Furniture vs. Bassett Furniture Industries | Hooker Furniture vs. Flexsteel Industries | Hooker Furniture vs. Hamilton Beach Brands | Hooker Furniture vs. Natuzzi SpA |
| Flutter Entertainment vs. Highway Holdings Limited | Flutter Entertainment vs. Datadog | Flutter Entertainment vs. ServiceNow | Flutter Entertainment vs. Austin Gold Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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