Correlation Between ENERGY and Haverty Furniture
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By analyzing existing cross correlation between ENERGY TRANSFER OPER and Haverty Furniture Companies, you can compare the effects of market volatilities on ENERGY 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 ENERGY with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGY and Haverty Furniture.
Diversification Opportunities for ENERGY and Haverty Furniture
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ENERGY and Haverty is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ENERGY TRANSFER OPER and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and ENERGY 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 ENERGY TRANSFER OPER 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 ENERGY i.e., ENERGY and Haverty Furniture go up and down completely randomly.
Pair Corralation between ENERGY and Haverty Furniture
Assuming the 90 days trading horizon ENERGY TRANSFER OPER is expected to generate 0.2 times more return on investment than Haverty Furniture. However, ENERGY TRANSFER OPER is 5.01 times less risky than Haverty Furniture. It trades about -0.02 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.04 per unit of risk. If you would invest 9,774 in ENERGY TRANSFER OPER on September 4, 2024 and sell it today you would lose (264.00) from holding ENERGY TRANSFER OPER or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
ENERGY TRANSFER OPER vs. Haverty Furniture Companies
Performance |
| Timeline |
| ENERGY TRANSFER OPER |
| Haverty Furniture |
ENERGY and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGY and Haverty Furniture
The main advantage of trading using opposite ENERGY and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGY 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.The idea behind ENERGY TRANSFER OPER and Haverty Furniture Companies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Arhaus Inc | Haverty Furniture vs. Home Depot |
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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