Correlation Between Haverty Furniture and Winmark
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Winmark 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 Winmark 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 Winmark, you can compare the effects of market volatilities on Haverty Furniture and Winmark 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 Winmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Winmark.
Diversification Opportunities for Haverty Furniture and Winmark
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haverty and Winmark is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark 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 Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Winmark go up and down completely randomly.
Pair Corralation between Haverty Furniture and Winmark
Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the Winmark. In addition to that, Haverty Furniture is 1.28 times more volatile than Winmark. It trades about -0.11 of its total potential returns per unit of risk. Winmark is currently generating about 0.17 per unit of volatility. If you would invest 37,341 in Winmark on August 23, 2024 and sell it today you would earn a total of 2,621 from holding Winmark or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. Winmark
Performance |
| Timeline |
| Haverty Furniture |
| Winmark |
Haverty Furniture and Winmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and Winmark
The main advantage of trading using opposite Haverty Furniture and Winmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Winmark 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 Winmark will offset losses from the drop in Winmark's long position.| Haverty Furniture vs. Small Cap Core | Haverty Furniture vs. Freedom Holding Corp | Haverty Furniture vs. Gfl Environmental Holdings | Haverty Furniture vs. Growth Fund Of |
| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |