Correlation Between DXC Technology and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Haverty Furniture 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 DXC Technology and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Haverty Furniture Companies, you can compare the effects of market volatilities on DXC Technology and Haverty Furniture 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 DXC Technology with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Haverty Furniture.
Diversification Opportunities for DXC Technology and Haverty Furniture
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DXC and Haverty is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and DXC Technology 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 DXC Technology Co are associated (or correlated) with Haverty Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haverty Furniture has no effect on the direction of DXC Technology i.e., DXC Technology and Haverty Furniture go up and down completely randomly.
Pair Corralation between DXC Technology and Haverty Furniture
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 0.98 times more return on investment than Haverty Furniture. However, DXC Technology Co is 1.02 times less risky than Haverty Furniture. It trades about 0.01 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.04 per unit of risk. If you would invest 2,210 in DXC Technology Co on November 9, 2024 and sell it today you would lose (77.00) from holding DXC Technology Co or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Haverty Furniture Companies
Performance |
| Timeline |
| DXC Technology |
| Haverty Furniture |
DXC Technology and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Haverty Furniture
The main advantage of trading using opposite DXC Technology and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Haverty Furniture 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 Haverty Furniture will offset losses from the drop in Haverty Furniture's long position.| DXC Technology vs. Sunny Optical Technology | DXC Technology vs. THORNEY TECHS LTD | DXC Technology vs. FARO Technologies | DXC Technology vs. US FOODS HOLDING |
| Haverty Furniture vs. GOODYEAR T RUBBER | Haverty Furniture vs. Summit Materials | Haverty Furniture vs. Vulcan Materials | Haverty Furniture vs. Hua Hong Semiconductor |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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