Correlation Between Haverty Furniture and SFCCN

Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and SFCCN 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 SFCCN 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 SFCCN 53 13 MAY 28, you can compare the effects of market volatilities on Haverty Furniture and SFCCN 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 SFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and SFCCN.

Diversification Opportunities for Haverty Furniture and SFCCN

0.3

Correlation Coefficient

Haverty Furniture  SFCCN

Weak diversification

The 3 months correlation between Haverty and SFCCN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and SFCCN 53 13 MAY 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFCCN 53 13 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 SFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFCCN 53 13 has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and SFCCN go up and down completely randomly.

Pair Corralation between Haverty Furniture and SFCCN

Considering the 90-day investment horizon Haverty Furniture is expected to generate 2.13 times less return on investment than SFCCN. In addition to that, Haverty Furniture is 7.13 times more volatile than SFCCN 53 13 MAY 28. It trades about 0.06 of its total potential returns per unit of risk. SFCCN 53 13 MAY 28 is currently generating about 0.95 per unit of volatility. If you would invest  9,743  in SFCCN 53 13 MAY 28 on December 5, 2024 and sell it today you would earn a total of  160.00  from holding SFCCN 53 13 MAY 28 or generate 1.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	23.81%
Values	Daily Returns

Haverty Furniture Companies  vs.  SFCCN 53 13 MAY 28

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.

SFCCN 53 13

Risk-Adjusted Performance

Very Weak

Over the last 90 days SFCCN 53 13 MAY 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SFCCN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Haverty Furniture and SFCCN

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

The idea behind Haverty Furniture Companies and SFCCN 53 13 MAY 28 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.