Correlation Between HAVERTY FURNITURE and CTS Eventim

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Can any of the company-specific risk be diversified away by investing in both HAVERTY FURNITURE and CTS Eventim 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 CTS Eventim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAVERTY FURNITURE A and CTS Eventim AG, you can compare the effects of market volatilities on HAVERTY FURNITURE and CTS Eventim 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 CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAVERTY FURNITURE and CTS Eventim.

Diversification Opportunities for HAVERTY FURNITURE and CTS Eventim

HAVERTYCTSDiversified AwayHAVERTYCTSDiversified Away100%
-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between HAVERTY and CTS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HAVERTY FURNITURE A and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 A are associated (or correlated) with CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of HAVERTY FURNITURE i.e., HAVERTY FURNITURE and CTS Eventim go up and down completely randomly.

Pair Corralation between HAVERTY FURNITURE and CTS Eventim

Assuming the 90 days trading horizon HAVERTY FURNITURE A is expected to under-perform the CTS Eventim. In addition to that, HAVERTY FURNITURE is 1.25 times more volatile than CTS Eventim AG. It trades about -0.05 of its total potential returns per unit of risk. CTS Eventim AG is currently generating about 0.08 per unit of volatility. If you would invest  7,584  in CTS Eventim AG on November 21, 2024 and sell it today you would earn a total of  2,916  from holding CTS Eventim AG or generate 38.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

HAVERTY FURNITURE A  vs.  CTS Eventim AG

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50510
JavaScript chart by amCharts 3.21.1525F0 EVD
       Timeline  
HAVERTY FURNITURE 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HAVERTY FURNITURE A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, HAVERTY FURNITURE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.522
CTS Eventim AG 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CTS Eventim AG are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CTS Eventim reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb80859095100105

HAVERTY FURNITURE and CTS Eventim Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.88-5.15-3.42-1.70.0291.713.465.26.94 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.1525F0 EVD
       Returns  

Pair Trading with HAVERTY FURNITURE and CTS Eventim

The main advantage of trading using opposite HAVERTY FURNITURE and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAVERTY FURNITURE position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's long position.
The idea behind HAVERTY FURNITURE A and CTS Eventim AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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