Correlation Between HNI Corp and Ameris Bancorp

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

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

Diversification Opportunities for HNI Corp and Ameris Bancorp

0.94

Correlation Coefficient

HNI Corp  Ameris Bancorp

Almost no diversification

The 3 months correlation between HNI and Ameris is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris Bancorp 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 Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of HNI Corp i.e., HNI Corp and Ameris Bancorp go up and down completely randomly.

Pair Corralation between HNI Corp and Ameris Bancorp

Considering the 90-day investment horizon HNI Corp is expected to generate 1.84 times less return on investment than Ameris Bancorp. In addition to that, HNI Corp is 1.38 times more volatile than Ameris Bancorp. It trades about 0.05 of its total potential returns per unit of risk. Ameris Bancorp is currently generating about 0.12 per unit of volatility. 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

HNI Corp  vs.  Ameris Bancorp

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.

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.

Pair Trading with HNI Corp and Ameris Bancorp

The main advantage of trading using opposite HNI Corp and Ameris Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp position performs unexpectedly, Ameris Bancorp 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 Ameris Bancorp will offset losses from the drop in Ameris Bancorp's long position.

The idea behind HNI Corp and Ameris Bancorp 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.