Correlation Between Canlan Ice and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Haverty Furniture Companies, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Haverty Furniture.
Diversification Opportunities for Canlan Ice and Haverty Furniture
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canlan and Haverty is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Haverty Furniture go up and down completely randomly.
Pair Corralation between Canlan Ice and Haverty Furniture
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.07 times more return on investment than Haverty Furniture. However, Canlan Ice Sports is 14.65 times less risky than Haverty Furniture. It trades about 0.18 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.08 per unit of risk. If you would invest 292.00 in Canlan Ice Sports on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Canlan Ice Sports or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Canlan Ice Sports vs. Haverty Furniture Companies
Performance |
| Timeline |
| Canlan Ice Sports |
| Haverty Furniture |
Canlan Ice and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Haverty Furniture
The main advantage of trading using opposite Canlan Ice and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS | Canlan Ice vs. BANDAI NAMCO Holdings |
| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Haverty Furniture Companies | Haverty Furniture vs. Home Depot |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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