Correlation Between Haverty Furniture and Aptiv PLC
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Aptiv PLC 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 Haverty Furniture and Aptiv PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haverty Furniture Companies and Aptiv PLC, you can compare the effects of market volatilities on Haverty Furniture and Aptiv PLC 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 Haverty Furniture with a short position of Aptiv PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Aptiv PLC.
Diversification Opportunities for Haverty Furniture and Aptiv PLC
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haverty and Aptiv is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Aptiv PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptiv PLC and Haverty 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 Haverty Furniture Companies are associated (or correlated) with Aptiv PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptiv PLC has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Aptiv PLC go up and down completely randomly.
Pair Corralation between Haverty Furniture and Aptiv PLC
Considering the 90-day investment horizon Haverty Furniture Companies is expected to generate 0.98 times more return on investment than Aptiv PLC. However, Haverty Furniture Companies is 1.02 times less risky than Aptiv PLC. It trades about 0.0 of its potential returns per unit of risk. Aptiv PLC is currently generating about -0.04 per unit of risk. If you would invest 2,852 in Haverty Furniture Companies on August 28, 2024 and sell it today you would lose (391.00) from holding Haverty Furniture Companies or give up 13.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Aptiv PLC
Performance |
| Timeline |
| Haverty Furniture |
| Aptiv PLC |
Haverty Furniture and Aptiv PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Aptiv PLC
The main advantage of trading using opposite Haverty Furniture and Aptiv PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Aptiv PLC 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 Aptiv PLC will offset losses from the drop in Aptiv PLC's long position.| Haverty Furniture vs. AutoZone | Haverty Furniture vs. Ulta Beauty | Haverty Furniture vs. Best Buy Co | Haverty Furniture vs. Dicks Sporting Goods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |