Correlation Between Liberty Media and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Liberty Media 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 Media 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 Media and Haverty Furniture Companies, you can compare the effects of market volatilities on Liberty Media 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 Media with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Haverty Furniture.
Diversification Opportunities for Liberty Media and Haverty Furniture
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and Haverty is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media 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 Media 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 Media 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 Media i.e., Liberty Media and Haverty Furniture go up and down completely randomly.
Pair Corralation between Liberty Media and Haverty Furniture
If you would invest 2,425 in Haverty Furniture Companies on August 31, 2024 and sell it today you would lose (14.00) from holding Haverty Furniture Companies or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Liberty Media vs. Haverty Furniture Companies
Performance |
| Timeline |
| Liberty Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Haverty Furniture |
Liberty Media and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Haverty Furniture
The main advantage of trading using opposite Liberty Media and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media 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 Media vs. E W Scripps | Liberty Media vs. Gray Television | Liberty Media vs. Saga Communications | Liberty Media vs. Cumulus Media Class |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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