Correlation Between Victory Integrity and Haverty Furniture

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

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

Diversification Opportunities for Victory Integrity and Haverty Furniture

0.79

Correlation Coefficient

Victory Integrity  Haverty Furniture

Poor diversification

The 3 months correlation between Victory and Haverty is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Victory Integrity Smallmid Cap and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and Victory Integrity 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 Victory Integrity Smallmid Cap 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 Victory Integrity i.e., Victory Integrity and Haverty Furniture go up and down completely randomly.

Pair Corralation between Victory Integrity and Haverty Furniture

Assuming the 90 days horizon Victory Integrity Smallmid Cap is expected to under-perform the Haverty Furniture. But the mutual fund apears to be less risky and, when comparing its historical volatility, Victory Integrity Smallmid Cap is 1.35 times less risky than Haverty Furniture. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Haverty Furniture Companies is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,383  in Haverty Furniture Companies on December 2, 2024 and sell it today you would lose (100.00) from holding Haverty Furniture Companies or give up 4.2% of portfolio value over 90 days.

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

Victory Integrity Smallmid Cap  vs.  Haverty Furniture Companies

Victory Integrity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Integrity Smallmid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

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.

Pair Trading with Victory Integrity and Haverty Furniture

The main advantage of trading using opposite Victory Integrity and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Integrity 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 Victory Integrity Smallmid Cap 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.