Correlation Between Ameris Bancorp and HNI Corp

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

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

Diversification Opportunities for Ameris Bancorp and HNI Corp

0.94

Correlation Coefficient

Ameris Bancorp  HNI Corp

Almost no diversification

The 3 months correlation between Ameris and HNI is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ameris Bancorp and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp and Ameris Bancorp 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 Ameris Bancorp 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 Ameris Bancorp i.e., Ameris Bancorp and HNI Corp go up and down completely randomly.

Pair Corralation between Ameris Bancorp and HNI Corp

Given the investment horizon of 90 days Ameris Bancorp is expected to generate 0.72 times more return on investment than HNI Corp. However, Ameris Bancorp is 1.38 times less risky than HNI Corp. It trades about 0.12 of its potential returns per unit of risk. HNI Corp is currently generating about 0.05 per unit of risk. If you would invest  5,947  in Ameris Bancorp on May 6, 2025 and sell it today you would earn a total of  713.00  from holding Ameris Bancorp or generate 11.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ameris Bancorp  vs.  HNI Corp

Ameris Bancorp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ameris Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Ameris Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

HNI Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HNI Corp are ranked lower than 3 (%) 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 September 2025.

Pair Trading with Ameris Bancorp and HNI Corp

The main advantage of trading using opposite Ameris Bancorp and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameris Bancorp 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 Ameris Bancorp 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.