Correlation Between Haverty Furniture and ACCOR SPADR
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and ACCOR SPADR 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 ACCOR SPADR 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 ACCOR SPADR NEW, you can compare the effects of market volatilities on Haverty Furniture and ACCOR SPADR 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 ACCOR SPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and ACCOR SPADR.
Diversification Opportunities for Haverty Furniture and ACCOR SPADR
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and ACCOR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and ACCOR SPADR NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCOR SPADR NEW 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 ACCOR SPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCOR SPADR NEW has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and ACCOR SPADR go up and down completely randomly.
Pair Corralation between Haverty Furniture and ACCOR SPADR
Assuming the 90 days horizon Haverty Furniture Companies is expected to under-perform the ACCOR SPADR. In addition to that, Haverty Furniture is 1.64 times more volatile than ACCOR SPADR NEW. It trades about 0.0 of its total potential returns per unit of risk. ACCOR SPADR NEW is currently generating about 0.07 per unit of volatility. If you would invest 560.00 in ACCOR SPADR NEW on November 29, 2024 and sell it today you would earn a total of 370.00 from holding ACCOR SPADR NEW or generate 66.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. ACCOR SPADR NEW
Performance |
| Timeline |
| Haverty Furniture |
| ACCOR SPADR NEW |
Haverty Furniture and ACCOR SPADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and ACCOR SPADR
The main advantage of trading using opposite Haverty Furniture and ACCOR SPADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, ACCOR SPADR 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 ACCOR SPADR will offset losses from the drop in ACCOR SPADR's long position.| Haverty Furniture vs. CVR Medical Corp | Haverty Furniture vs. Semiconductor Manufacturing International | Haverty Furniture vs. Apyx Medical Corp | Haverty Furniture vs. Japan Medical Dynamic |
| ACCOR SPADR vs. CORNISH METALS INC | ACCOR SPADR vs. Chalice Mining Limited | ACCOR SPADR vs. East Africa Metals | ACCOR SPADR vs. Hellenic Telecommunications Organization |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |