Correlation Between Haverty Furniture and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on Haverty Furniture and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and CompuGroup Medical.
Diversification Opportunities for Haverty Furniture and CompuGroup Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and CompuGroup is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Haverty Furniture and CompuGroup Medical
Assuming the 90 days horizon Haverty Furniture Companies is expected to generate 0.66 times more return on investment than CompuGroup Medical. However, Haverty Furniture Companies is 1.51 times less risky than CompuGroup Medical. It trades about -0.04 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.03 per unit of risk. If you would invest 3,022 in Haverty Furniture Companies on September 12, 2024 and sell it today you would lose (822.00) from holding Haverty Furniture Companies or give up 27.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Haverty Furniture Companies vs. CompuGroup Medical SE
Performance |
| Timeline |
| Haverty Furniture |
| CompuGroup Medical |
Haverty Furniture and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and CompuGroup Medical
The main advantage of trading using opposite Haverty Furniture and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Haverty Furniture vs. Lowes Companies | Haverty Furniture vs. Superior Plus Corp | Haverty Furniture vs. SIVERS SEMICONDUCTORS AB | Haverty Furniture vs. NorAm Drilling AS |
| CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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