Correlation Between HNI Corp and Knoll

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Can any of the company-specific risk be diversified away by investing in both HNI Corp and Knoll 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 HNI Corp and Knoll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Knoll Inc, you can compare the effects of market volatilities on HNI Corp and Knoll 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 HNI Corp with a short position of Knoll. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Knoll.

Diversification Opportunities for HNI Corp and Knoll

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between HNI and Knoll is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Knoll Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knoll Inc and HNI Corp 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 HNI Corp are associated (or correlated) with Knoll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knoll Inc has no effect on the direction of HNI Corp i.e., HNI Corp and Knoll go up and down completely randomly.

Pair Corralation between HNI Corp and Knoll

If you would invest  4,160  in HNI Corp on December 29, 2023 and sell it today you would earn a total of  351.00  from holding HNI Corp or generate 8.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

HNI Corp  vs.  Knoll Inc

 Performance 
       Timeline  
HNI Corp 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
Modest
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 weak basic indicators, HNI Corp may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Knoll Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Knoll Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Knoll is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

HNI Corp and Knoll Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HNI Corp and Knoll

The main advantage of trading using opposite HNI Corp and Knoll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Knoll 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 Knoll will offset losses from the drop in Knoll's long position.
The idea behind HNI Corp and Knoll Inc 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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