Correlation Between Laureate Education and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Laureate Education and Haverty Furniture 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 Laureate Education and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laureate Education and Haverty Furniture Companies, you can compare the effects of market volatilities on Laureate Education and Haverty Furniture 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 Laureate Education with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laureate Education and Haverty Furniture.
Diversification Opportunities for Laureate Education and Haverty Furniture
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Laureate and Haverty is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Laureate Education and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Laureate Education 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 Laureate Education are associated (or correlated) with Haverty Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haverty Furniture has no effect on the direction of Laureate Education i.e., Laureate Education and Haverty Furniture go up and down completely randomly.
Pair Corralation between Laureate Education and Haverty Furniture
Assuming the 90 days trading horizon Laureate Education is expected to generate 0.87 times more return on investment than Haverty Furniture. However, Laureate Education is 1.15 times less risky than Haverty Furniture. It trades about 0.12 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.09 per unit of risk. If you would invest 1,750 in Laureate Education on November 4, 2024 and sell it today you would earn a total of 60.00 from holding Laureate Education or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laureate Education vs. Haverty Furniture Companies
Performance |
| Timeline |
| Laureate Education |
| Haverty Furniture |
Laureate Education and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laureate Education and Haverty Furniture
The main advantage of trading using opposite Laureate Education and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laureate Education position performs unexpectedly, Haverty Furniture 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 Haverty Furniture will offset losses from the drop in Haverty Furniture's long position.| Laureate Education vs. SHIP HEALTHCARE HLDGINC | Laureate Education vs. ARDAGH METAL PACDL 0001 | Laureate Education vs. CEOTRONICS | Laureate Education vs. DISTRICT METALS |
| Haverty Furniture vs. China Resources Beer | Haverty Furniture vs. Fevertree Drinks PLC | Haverty Furniture vs. ATRESMEDIA | Haverty Furniture vs. ANTA SPORTS PRODUCT |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |