Correlation Between Haverty Furniture and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Tsingtao Brewery 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 Tsingtao Brewery 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 Tsingtao Brewery, you can compare the effects of market volatilities on Haverty Furniture and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Tsingtao Brewery.
Diversification Opportunities for Haverty Furniture and Tsingtao Brewery
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and Tsingtao is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Haverty Furniture and Tsingtao Brewery
Assuming the 90 days horizon Haverty Furniture Companies is expected to generate 0.92 times more return on investment than Tsingtao Brewery. However, Haverty Furniture Companies is 1.09 times less risky than Tsingtao Brewery. It trades about -0.02 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about -0.19 per unit of risk. If you would invest 2,100 in Haverty Furniture Companies on November 8, 2024 and sell it today you would lose (20.00) from holding Haverty Furniture Companies or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Tsingtao Brewery
Performance |
| Timeline |
| Haverty Furniture |
| Tsingtao Brewery |
Haverty Furniture and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Tsingtao Brewery
The main advantage of trading using opposite Haverty Furniture and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Haverty Furniture vs. G III Apparel Group | Haverty Furniture vs. American Eagle Outfitters | Haverty Furniture vs. Granite Construction | Haverty Furniture vs. Transport International Holdings |
| Tsingtao Brewery vs. WT OFFSHORE | Tsingtao Brewery vs. EIDESVIK OFFSHORE NK | Tsingtao Brewery vs. MARKET VECTR RETAIL | Tsingtao Brewery vs. SIEM OFFSHORE NEW |
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 Stocks Directory module to find actively traded stocks across global markets.
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