Correlation Between Haverty Furniture and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Origin Agritech 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 Haverty Furniture and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haverty Furniture Companies and Origin Agritech, you can compare the effects of market volatilities on Haverty Furniture and Origin Agritech 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 Haverty Furniture with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Origin Agritech.
Diversification Opportunities for Haverty Furniture and Origin Agritech
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haverty and Origin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Haverty 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 Haverty Furniture Companies are associated (or correlated) with Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Origin Agritech go up and down completely randomly.
Pair Corralation between Haverty Furniture and Origin Agritech
Assuming the 90 days horizon Haverty Furniture Companies is expected to generate 0.52 times more return on investment than Origin Agritech. However, Haverty Furniture Companies is 1.91 times less risky than Origin Agritech. It trades about 0.0 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.07 per unit of risk. If you would invest 2,352 in Haverty Furniture Companies on September 5, 2024 and sell it today you would lose (152.00) from holding Haverty Furniture Companies or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Origin Agritech
Performance |
| Timeline |
| Haverty Furniture |
| Origin Agritech |
Haverty Furniture and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Origin Agritech
The main advantage of trading using opposite Haverty Furniture and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| Haverty Furniture vs. Sumitomo Mitsui Construction | Haverty Furniture vs. Major Drilling Group | Haverty Furniture vs. HYDROFARM HLD GRP | Haverty Furniture vs. WIMFARM SA EO |
| Origin Agritech vs. NISSIN FOODS HLDGS | Origin Agritech vs. Ebro Foods SA | Origin Agritech vs. Tyson Foods | Origin Agritech vs. CAL MAINE FOODS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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