Correlation Between Haverty Furniture and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Peel Mining 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 Peel Mining 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 Peel Mining Limited, you can compare the effects of market volatilities on Haverty Furniture and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Peel Mining.
Diversification Opportunities for Haverty Furniture and Peel Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haverty and Peel is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Peel Mining go up and down completely randomly.
Pair Corralation between Haverty Furniture and Peel Mining
Assuming the 90 days horizon Haverty Furniture is expected to generate 1.39 times less return on investment than Peel Mining. But when comparing it to its historical volatility, Haverty Furniture Companies is 3.09 times less risky than Peel Mining. It trades about 0.14 of its potential returns per unit of risk. Peel Mining Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.60 in Peel Mining Limited on September 15, 2024 and sell it today you would earn a total of 0.35 from holding Peel Mining Limited or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Peel Mining Limited
Performance |
| Timeline |
| Haverty Furniture |
| Peel Mining Limited |
Haverty Furniture and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Peel Mining
The main advantage of trading using opposite Haverty Furniture and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining'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 |
| Peel Mining vs. CENTURIA OFFICE REIT | Peel Mining vs. Haverty Furniture Companies | Peel Mining vs. Tri Pointe Homes | Peel Mining vs. Cars Inc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |