Correlation Between Haverty Furniture and HYDROFARM HLD
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and HYDROFARM HLD 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 HYDROFARM HLD 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 HYDROFARM HLD GRP, you can compare the effects of market volatilities on Haverty Furniture and HYDROFARM HLD 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 HYDROFARM HLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and HYDROFARM HLD.
Diversification Opportunities for Haverty Furniture and HYDROFARM HLD
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haverty and HYDROFARM is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and HYDROFARM HLD GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYDROFARM HLD GRP 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 HYDROFARM HLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYDROFARM HLD GRP has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and HYDROFARM HLD go up and down completely randomly.
Pair Corralation between Haverty Furniture and HYDROFARM HLD
Assuming the 90 days horizon Haverty Furniture Companies is expected to generate 0.57 times more return on investment than HYDROFARM HLD. However, Haverty Furniture Companies is 1.77 times less risky than HYDROFARM HLD. It trades about -0.11 of its potential returns per unit of risk. HYDROFARM HLD GRP is currently generating about -0.21 per unit of risk. If you would invest 2,168 in Haverty Furniture Companies on September 25, 2024 and sell it today you would lose (128.00) from holding Haverty Furniture Companies or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. HYDROFARM HLD GRP
Performance |
| Timeline |
| Haverty Furniture |
| HYDROFARM HLD GRP |
Haverty Furniture and HYDROFARM HLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and HYDROFARM HLD
The main advantage of trading using opposite Haverty Furniture and HYDROFARM HLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, HYDROFARM HLD 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 HYDROFARM HLD will offset losses from the drop in HYDROFARM HLD's long position.| Haverty Furniture vs. CeoTronics AG | Haverty Furniture vs. Jupiter Fund Management | Haverty Furniture vs. Bumrungrad Hospital Public | Haverty Furniture vs. Zijin Mining Group |
| HYDROFARM HLD vs. Caterpillar | HYDROFARM HLD vs. Caterpillar | HYDROFARM HLD vs. Deere Company | HYDROFARM HLD vs. AB Volvo |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |