Correlation Between OZ Minerals and Haverty Furniture

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

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

Diversification Opportunities for OZ Minerals and Haverty Furniture

0.11

Correlation Coefficient

OZ Minerals  Haverty Furniture

Average diversification

The 3 months correlation between OZMLF and Haverty is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding OZ Minerals Limited and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and OZ Minerals 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 OZ Minerals Limited 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 OZ Minerals i.e., OZ Minerals and Haverty Furniture go up and down completely randomly.

Pair Corralation between OZ Minerals and Haverty Furniture

Assuming the 90 days horizon OZ Minerals Limited is expected to generate 1.87 times more return on investment than Haverty Furniture. However, OZ Minerals is 1.87 times more volatile than Haverty Furniture Companies. It trades about 0.05 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  1,709  in OZ Minerals Limited on September 20, 2024 and sell it today you would earn a total of  191.00  from holding OZ Minerals Limited or generate 11.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	19.15%
Values	Daily Returns

OZ Minerals Limited  vs.  Haverty Furniture Companies

OZ Minerals Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OZ Minerals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, OZ Minerals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Haverty Furniture

Risk-Adjusted Performance

0 of 100

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 unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with OZ Minerals and Haverty Furniture

The main advantage of trading using opposite OZ Minerals and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OZ Minerals 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 OZ Minerals Limited 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.