Correlation Between Haverty Furniture and Comstock Holding

Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Comstock Holding 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 Haverty Furniture and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haverty Furniture Companies and Comstock Holding Companies, you can compare the effects of market volatilities on Haverty Furniture and Comstock Holding 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 Haverty Furniture with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Comstock Holding.

Diversification Opportunities for Haverty Furniture and Comstock Holding

0.49

Correlation Coefficient

Haverty Furniture  Comstock Holding

Very weak diversification

The 3 months correlation between Haverty and Comstock is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com and Haverty Furniture 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 Haverty Furniture Companies are associated (or correlated) with Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Comstock Holding go up and down completely randomly.

Pair Corralation between Haverty Furniture and Comstock Holding

Considering the 90-day investment horizon Haverty Furniture Companies is expected to generate 0.74 times more return on investment than Comstock Holding. However, Haverty Furniture Companies is 1.35 times less risky than Comstock Holding. It trades about -0.03 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.2 per unit of risk. If you would invest  2,326  in Haverty Furniture Companies on December 4, 2024 and sell it today you would lose (99.00) from holding Haverty Furniture Companies or give up 4.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Haverty Furniture Companies  vs.  Comstock Holding Companies

Haverty Furniture

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haverty Furniture Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Haverty Furniture is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Comstock Holding Com

Risk-Adjusted Performance

Very Weak

Over the last 90 days Comstock Holding Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Haverty Furniture and Comstock Holding

The main advantage of trading using opposite Haverty Furniture and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.

The idea behind Haverty Furniture Companies and Comstock Holding 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.