Correlation Between Playtika Holding and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Playtika Holding 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 Playtika Holding and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and Haverty Furniture Companies, you can compare the effects of market volatilities on Playtika Holding 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 Playtika Holding with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Haverty Furniture.
Diversification Opportunities for Playtika Holding and Haverty Furniture
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Playtika and Haverty is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Playtika Holding 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 Playtika Holding Corp 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 Playtika Holding i.e., Playtika Holding and Haverty Furniture go up and down completely randomly.
Pair Corralation between Playtika Holding and Haverty Furniture
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.1 times less return on investment than Haverty Furniture. But when comparing it to its historical volatility, Playtika Holding Corp is 1.77 times less risky than Haverty Furniture. It trades about 0.3 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,186 in Haverty Furniture Companies on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Haverty Furniture Companies or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Haverty Furniture Companies
Performance |
| Timeline |
| Playtika Holding Corp |
| Haverty Furniture |
Playtika Holding and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Haverty Furniture
The main advantage of trading using opposite Playtika Holding and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding 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.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| Haverty Furniture vs. Purple Innovation | Haverty Furniture vs. Mohawk Industries | Haverty Furniture vs. La Z Boy Incorporated | Haverty Furniture vs. Leggett Platt Incorporated |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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