Correlation Between Fiskars Oyj and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Fiskars Oyj 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 Fiskars Oyj and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiskars Oyj Abp and Haverty Furniture Companies, you can compare the effects of market volatilities on Fiskars Oyj 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 Fiskars Oyj with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiskars Oyj and Haverty Furniture.
Diversification Opportunities for Fiskars Oyj and Haverty Furniture
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fiskars and Haverty is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fiskars Oyj Abp and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Fiskars Oyj 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 Fiskars Oyj Abp 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 Fiskars Oyj i.e., Fiskars Oyj and Haverty Furniture go up and down completely randomly.
Pair Corralation between Fiskars Oyj and Haverty Furniture
Assuming the 90 days horizon Fiskars Oyj Abp is expected to generate 0.55 times more return on investment than Haverty Furniture. However, Fiskars Oyj Abp is 1.82 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 -0.02 per unit of risk. If you would invest 1,531 in Fiskars Oyj Abp on December 10, 2024 and sell it today you would earn a total of 3.00 from holding Fiskars Oyj Abp or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiskars Oyj Abp vs. Haverty Furniture Companies
Performance |
| Timeline |
| Fiskars Oyj Abp |
| Haverty Furniture |
Fiskars Oyj and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiskars Oyj and Haverty Furniture
The main advantage of trading using opposite Fiskars Oyj and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiskars Oyj 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.| Fiskars Oyj vs. Verizon Communications | Fiskars Oyj vs. SIERRA METALS | Fiskars Oyj vs. INTERSHOP Communications Aktiengesellschaft | Fiskars Oyj vs. LI METAL P |
| Haverty Furniture vs. SENECA FOODS A | Haverty Furniture vs. Transport International Holdings | Haverty Furniture vs. Gaztransport Technigaz SA | Haverty Furniture vs. Nishi Nippon Railroad Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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