Correlation Between WIMFARM SA and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA 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 WIMFARM SA and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and Haverty Furniture Companies, you can compare the effects of market volatilities on WIMFARM SA 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 WIMFARM SA with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Haverty Furniture.
Diversification Opportunities for WIMFARM SA and Haverty Furniture
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and Haverty is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and WIMFARM SA 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 WIMFARM SA EO 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 WIMFARM SA i.e., WIMFARM SA and Haverty Furniture go up and down completely randomly.
Pair Corralation between WIMFARM SA and Haverty Furniture
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 1.36 times more return on investment than Haverty Furniture. However, WIMFARM SA is 1.36 times more volatile than Haverty Furniture Companies. It trades about 0.18 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.1 per unit of risk. If you would invest 332.00 in WIMFARM SA EO on September 13, 2024 and sell it today you would earn a total of 36.00 from holding WIMFARM SA EO or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Haverty Furniture Companies
Performance |
| Timeline |
| WIMFARM SA EO |
| Haverty Furniture |
WIMFARM SA and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Haverty Furniture
The main advantage of trading using opposite WIMFARM SA and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA 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.| WIMFARM SA vs. AB Volvo | WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
| Haverty Furniture vs. Lowes Companies | Haverty Furniture vs. Superior Plus Corp | Haverty Furniture vs. SIVERS SEMICONDUCTORS AB | Haverty Furniture vs. NorAm Drilling AS |
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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