Correlation Between Liberty Global and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Liberty Global 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 Liberty Global and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Global PLC and Haverty Furniture Companies, you can compare the effects of market volatilities on Liberty Global 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 Liberty Global with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Global and Haverty Furniture.
Diversification Opportunities for Liberty Global and Haverty Furniture
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Liberty and Haverty is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Global PLC and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Liberty Global 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 Liberty Global PLC 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 Liberty Global i.e., Liberty Global and Haverty Furniture go up and down completely randomly.
Pair Corralation between Liberty Global and Haverty Furniture
Assuming the 90 days horizon Liberty Global PLC is expected to under-perform the Haverty Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Liberty Global PLC is 34.57 times less risky than Haverty Furniture. The stock trades about -0.01 of its potential returns per unit of risk. The Haverty Furniture Companies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,627 in Haverty Furniture Companies on August 27, 2024 and sell it today you would lose (1,400) from holding Haverty Furniture Companies or give up 38.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.19% |
| Values | Daily Returns |
Liberty Global PLC vs. Haverty Furniture Companies
Performance |
| Timeline |
| Liberty Global PLC |
| Haverty Furniture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Liberty Global and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Global and Haverty Furniture
The main advantage of trading using opposite Liberty Global and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Global 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.| Liberty Global vs. Liberty Global PLC | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Broadband Srs |
| Haverty Furniture vs. Target | Haverty Furniture vs. Lowes Companies | Haverty Furniture vs. Walmart | Haverty Furniture vs. Aquagold International |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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