Correlation Between Bassett Furniture and MARKEL
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By analyzing existing cross correlation between Bassett Furniture Industries and MARKEL P 43, you can compare the effects of market volatilities on Bassett Furniture and MARKEL 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 MARKEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and MARKEL.
Diversification Opportunities for Bassett Furniture and MARKEL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bassett and MARKEL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and MARKEL P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKEL P 43 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 MARKEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKEL P 43 has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and MARKEL go up and down completely randomly.
Pair Corralation between Bassett Furniture and MARKEL
Given the investment horizon of 90 days Bassett Furniture is expected to generate 1467.56 times less return on investment than MARKEL. But when comparing it to its historical volatility, Bassett Furniture Industries is 67.94 times less risky than MARKEL. It trades about 0.01 of its potential returns per unit of risk. MARKEL P 43 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,190 in MARKEL P 43 on September 5, 2024 and sell it today you would earn a total of 62.00 from holding MARKEL P 43 or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.23% |
| Values | Daily Returns |
Bassett Furniture Industries vs. MARKEL P 43
Performance |
| Timeline |
| Bassett Furniture |
| MARKEL P 43 |
Bassett Furniture and MARKEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and MARKEL
The main advantage of trading using opposite Bassett Furniture and MARKEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, MARKEL 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 MARKEL will offset losses from the drop in MARKEL's long position.| Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Crown Crafts | Bassett Furniture vs. MasterBrand | Bassett Furniture vs. MillerKnoll |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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