Correlation Between Bassett Furniture and Manaris Corp
Can any of the company-specific risk be diversified away by investing in both Bassett Furniture and Manaris Corp 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 Bassett Furniture and Manaris Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bassett Furniture Industries and Manaris Corp, you can compare the effects of market volatilities on Bassett Furniture and Manaris Corp 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 Bassett Furniture with a short position of Manaris Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and Manaris Corp.
Diversification Opportunities for Bassett Furniture and Manaris Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bassett and Manaris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and Manaris Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaris Corp and Bassett 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 Bassett Furniture Industries are associated (or correlated) with Manaris Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaris Corp has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and Manaris Corp go up and down completely randomly.
Pair Corralation between Bassett Furniture and Manaris Corp
If you would invest 1,385 in Bassett Furniture Industries on November 5, 2024 and sell it today you would earn a total of 71.00 from holding Bassett Furniture Industries or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bassett Furniture Industries vs. Manaris Corp
Performance |
| Timeline |
| Bassett Furniture |
| Manaris Corp |
Bassett Furniture and Manaris Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and Manaris Corp
The main advantage of trading using opposite Bassett Furniture and Manaris Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, Manaris Corp 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 Manaris Corp will offset losses from the drop in Manaris Corp's long position.| Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
| Manaris Corp vs. SEI Investments | Manaris Corp vs. Encore Capital Group | Manaris Corp vs. Ecovyst | Manaris Corp vs. Avient Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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