Correlation Between Haverty Furniture and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands, you can compare the effects of market volatilities on Haverty Furniture and Jeffs Brands 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 Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Jeffs Brands.
Diversification Opportunities for Haverty Furniture and Jeffs Brands
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and Jeffs is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands 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 Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Jeffs Brands go up and down completely randomly.
Pair Corralation between Haverty Furniture and Jeffs Brands
Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the Jeffs Brands. But the stock apears to be less risky and, when comparing its historical volatility, Haverty Furniture Companies is 20.19 times less risky than Jeffs Brands. The stock trades about -0.01 of its potential returns per unit of risk. The Jeffs Brands is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Jeffs Brands on September 13, 2024 and sell it today you would lose (602.00) from holding Jeffs Brands or give up 69.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Jeffs Brands
Performance |
| Timeline |
| Haverty Furniture |
| Jeffs Brands |
Haverty Furniture and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Jeffs Brands
The main advantage of trading using opposite Haverty Furniture and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Home Depot | Haverty Furniture vs. Lowes Companies |
| Jeffs Brands vs. Twilio Inc | Jeffs Brands vs. Getty Images Holdings | Jeffs Brands vs. Baidu Inc | Jeffs Brands vs. Snap Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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