Correlation Between Take-Two Interactive and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive 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 Take-Two Interactive and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and Haverty Furniture Companies, you can compare the effects of market volatilities on Take-Two Interactive 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 Take-Two Interactive with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and Haverty Furniture.
Diversification Opportunities for Take-Two Interactive and Haverty Furniture
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Take-Two and Haverty is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Take-Two Interactive 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 Take Two Interactive Software 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 Take-Two Interactive i.e., Take-Two Interactive and Haverty Furniture go up and down completely randomly.
Pair Corralation between Take-Two Interactive and Haverty Furniture
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.64 times more return on investment than Haverty Furniture. However, Take Two Interactive Software is 1.55 times less risky than Haverty Furniture. It trades about 0.07 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.01 per unit of risk. If you would invest 13,320 in Take Two Interactive Software on September 19, 2024 and sell it today you would earn a total of 4,598 from holding Take Two Interactive Software or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Haverty Furniture Companies
Performance |
| Timeline |
| Take Two Interactive |
| Haverty Furniture |
Take-Two Interactive and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and Haverty Furniture
The main advantage of trading using opposite Take-Two Interactive and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive 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.| Take-Two Interactive vs. INTER CARS SA | Take-Two Interactive vs. Canon Marketing Japan | Take-Two Interactive vs. COMMERCIAL VEHICLE | Take-Two Interactive vs. FLOW TRADERS LTD |
| Haverty Furniture vs. SK TELECOM TDADR | Haverty Furniture vs. Singapore Telecommunications Limited | Haverty Furniture vs. Cogent Communications Holdings | Haverty Furniture vs. Charter Communications |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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