Correlation Between Haverty Furniture and Dollar General
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Dollar General 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 Dollar General 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 Dollar General, you can compare the effects of market volatilities on Haverty Furniture and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Dollar General.
Diversification Opportunities for Haverty Furniture and Dollar General
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haverty and Dollar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Dollar General go up and down completely randomly.
Pair Corralation between Haverty Furniture and Dollar General
Assuming the 90 days horizon Haverty Furniture Companies is expected to generate 0.96 times more return on investment than Dollar General. However, Haverty Furniture Companies is 1.04 times less risky than Dollar General. It trades about 0.0 of its potential returns per unit of risk. Dollar General is currently generating about -0.06 per unit of risk. If you would invest 2,563 in Haverty Furniture Companies on December 1, 2024 and sell it today you would lose (463.00) from holding Haverty Furniture Companies or give up 18.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Dollar General
Performance |
| Timeline |
| Haverty Furniture |
| Dollar General |
Haverty Furniture and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Dollar General
The main advantage of trading using opposite Haverty Furniture and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| Haverty Furniture vs. BOVIS HOMES GROUP | Haverty Furniture vs. Tower Semiconductor | Haverty Furniture vs. ANGI Homeservices | Haverty Furniture vs. HAVERTY FURNITURE A |
| Dollar General vs. Nok Airlines PCL | Dollar General vs. Playtech plc | Dollar General vs. LG Display Co | Dollar General vs. GUILD ESPORTS PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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