Correlation Between Haverty Furniture and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and SunLink Health 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 SunLink Health 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 SunLink Health Systems, you can compare the effects of market volatilities on Haverty Furniture and SunLink Health 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 SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and SunLink Health.
Diversification Opportunities for Haverty Furniture and SunLink Health
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haverty and SunLink is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and SunLink Health go up and down completely randomly.
Pair Corralation between Haverty Furniture and SunLink Health
Considering the 90-day investment horizon Haverty Furniture is expected to generate 8.47 times less return on investment than SunLink Health. But when comparing it to its historical volatility, Haverty Furniture Companies is 14.48 times less risky than SunLink Health. It trades about 0.16 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 77.00 in SunLink Health Systems on October 21, 2024 and sell it today you would earn a total of 8.00 from holding SunLink Health Systems or generate 10.39% 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. SunLink Health Systems
Performance |
| Timeline |
| Haverty Furniture |
| SunLink Health Systems |
Haverty Furniture and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and SunLink Health
The main advantage of trading using opposite Haverty Furniture and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health's long position.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Kirklands | Haverty Furniture vs. Arhaus Inc |
| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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