Correlation Between Haverty Furniture and Kontoor Brands
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Kontoor 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 Kontoor 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 Kontoor Brands, you can compare the effects of market volatilities on Haverty Furniture and Kontoor 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 Kontoor Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Kontoor Brands.
Diversification Opportunities for Haverty Furniture and Kontoor Brands
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haverty and Kontoor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Kontoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontoor 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 Kontoor Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontoor Brands has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Kontoor Brands go up and down completely randomly.
Pair Corralation between Haverty Furniture and Kontoor Brands
Considering the 90-day investment horizon Haverty Furniture Companies is expected to generate 0.65 times more return on investment than Kontoor Brands. However, Haverty Furniture Companies is 1.54 times less risky than Kontoor Brands. It trades about 0.05 of its potential returns per unit of risk. Kontoor Brands is currently generating about -0.18 per unit of risk. If you would invest 2,198 in Haverty Furniture Companies on November 30, 2024 and sell it today you would earn a total of 85.00 from holding Haverty Furniture Companies or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Kontoor Brands
Performance |
| Timeline |
| Haverty Furniture |
| Kontoor Brands |
Haverty Furniture and Kontoor Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Kontoor Brands
The main advantage of trading using opposite Haverty Furniture and Kontoor Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Kontoor 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 Kontoor Brands will offset losses from the drop in Kontoor Brands' long position.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Kirklands | Haverty Furniture vs. Arhaus Inc |
| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |