Correlation Between Haverty Furniture and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and CHINA TONTINE 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 CHINA TONTINE 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 CHINA TONTINE WINES, you can compare the effects of market volatilities on Haverty Furniture and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and CHINA TONTINE.
Diversification Opportunities for Haverty Furniture and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haverty and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Haverty Furniture and CHINA TONTINE
If you would invest 2,100 in Haverty Furniture Companies on November 7, 2024 and sell it today you would earn a total of 120.00 from holding Haverty Furniture Companies or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Haverty Furniture Companies vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Haverty Furniture |
| CHINA TONTINE WINES |
Haverty Furniture and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and CHINA TONTINE
The main advantage of trading using opposite Haverty Furniture and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Haverty Furniture vs. MPH Health Care | Haverty Furniture vs. Universal Health Realty | Haverty Furniture vs. Siemens Healthineers AG | Haverty Furniture vs. US Physical Therapy |
| CHINA TONTINE vs. Erste Group Bank | CHINA TONTINE vs. SOUTHWEST AIRLINES | CHINA TONTINE vs. JAPAN AIRLINES | CHINA TONTINE vs. Discover Financial Services |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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