Correlation Between GOME Retail and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both GOME Retail 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 GOME Retail and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOME Retail Holdings and Haverty Furniture Companies, you can compare the effects of market volatilities on GOME Retail 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 GOME Retail with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOME Retail and Haverty Furniture.
Diversification Opportunities for GOME Retail and Haverty Furniture
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOME and Haverty is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GOME Retail Holdings and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and GOME Retail 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 GOME Retail Holdings 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 GOME Retail i.e., GOME Retail and Haverty Furniture go up and down completely randomly.
Pair Corralation between GOME Retail and Haverty Furniture
If you would invest 2,100 in Haverty Furniture Companies on November 7, 2024 and sell it today you would earn a total of 120.00 from holding Haverty Furniture Companies or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOME Retail Holdings vs. Haverty Furniture Companies
Performance |
| Timeline |
| GOME Retail Holdings |
| Haverty Furniture |
GOME Retail and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOME Retail and Haverty Furniture
The main advantage of trading using opposite GOME Retail and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOME Retail 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.| GOME Retail vs. HANOVER INSURANCE | GOME Retail vs. Laureate Education | GOME Retail vs. QBE Insurance Group | GOME Retail vs. REVO INSURANCE SPA |
| Haverty Furniture vs. MPH Health Care | Haverty Furniture vs. Universal Health Realty | Haverty Furniture vs. Siemens Healthineers AG | Haverty Furniture vs. US Physical Therapy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |