Correlation Between Apple and HAVERTY FURNITURE
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and HAVERTY FURNITURE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and HAVERTY FURNITURE A, you can compare the effects of market volatilities on Apple 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 Apple with a short position of HAVERTY FURNITURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HAVERTY FURNITURE.
Diversification Opportunities for Apple and HAVERTY FURNITURE
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apple and HAVERTY is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HAVERTY FURNITURE A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVERTY FURNITURE and Apple 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 Apple Inc 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 Apple i.e., Apple and HAVERTY FURNITURE go up and down completely randomly.
Pair Corralation between Apple and HAVERTY FURNITURE
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the HAVERTY FURNITURE. In addition to that, Apple is 1.45 times more volatile than HAVERTY FURNITURE A. It trades about -0.06 of its total potential returns per unit of risk. HAVERTY FURNITURE A is currently generating about 0.16 per unit of volatility. If you would invest 2,040 in HAVERTY FURNITURE A on November 7, 2024 and sell it today you would earn a total of 100.00 from holding HAVERTY FURNITURE A or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apple Inc vs. HAVERTY FURNITURE A
Performance |
| Timeline |
| Apple Inc |
| HAVERTY FURNITURE |
Apple and HAVERTY FURNITURE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and HAVERTY FURNITURE
The main advantage of trading using opposite Apple and HAVERTY FURNITURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Hochschild Mining plc | Apple vs. DETALION GAMES SA | Apple vs. Scientific Games | Apple vs. Magnachip Semiconductor |
| HAVERTY FURNITURE vs. Lattice Semiconductor | HAVERTY FURNITURE vs. Semiconductor Manufacturing International | HAVERTY FURNITURE vs. Sterling Construction | HAVERTY FURNITURE vs. China Railway Construction |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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