Correlation Between Haverty Furniture and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Boston Properties 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 Boston Properties 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 Boston Properties, you can compare the effects of market volatilities on Haverty Furniture and Boston Properties 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 Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Boston Properties.
Diversification Opportunities for Haverty Furniture and Boston Properties
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and Boston is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties 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 Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Boston Properties go up and down completely randomly.
Pair Corralation between Haverty Furniture and Boston Properties
Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the Boston Properties. But the stock apears to be less risky and, when comparing its historical volatility, Haverty Furniture Companies is 1.05 times less risky than Boston Properties. The stock trades about -0.01 of its potential returns per unit of risk. The Boston Properties is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,731 in Boston Properties on August 28, 2024 and sell it today you would earn a total of 2,481 from holding Boston Properties or generate 43.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Boston Properties
Performance |
| Timeline |
| Haverty Furniture |
| Boston Properties |
Haverty Furniture and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Boston Properties
The main advantage of trading using opposite Haverty Furniture and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Kirklands | Haverty Furniture vs. Arhaus Inc |
| Boston Properties vs. SL Green Realty | Boston Properties vs. Douglas Emmett | Boston Properties vs. Kilroy Realty Corp | Boston Properties vs. Alexandria Real Estate |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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