Correlation Between SOGECLAIR and Haverty Furniture

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

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

Diversification Opportunities for SOGECLAIR and Haverty Furniture

0.58

Correlation Coefficient

SOGECLAIR  Haverty Furniture

Very weak diversification

The 3 months correlation between SOGECLAIR and Haverty is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and SOGECLAIR 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 SOGECLAIR SA INH 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 SOGECLAIR i.e., SOGECLAIR and Haverty Furniture go up and down completely randomly.

Pair Corralation between SOGECLAIR and Haverty Furniture

Assuming the 90 days horizon SOGECLAIR SA INH is expected to generate 1.06 times more return on investment than Haverty Furniture. However, SOGECLAIR is 1.06 times more volatile than Haverty Furniture Companies. It trades about 0.19 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.08 per unit of risk. If you would invest  1,956  in SOGECLAIR SA INH on April 25, 2025 and sell it today you would earn a total of  904.00  from holding SOGECLAIR SA INH or generate 46.22% return on investment over 90 days.

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

SOGECLAIR SA INH  vs.  Haverty Furniture Companies

SOGECLAIR SA INH

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SOGECLAIR SA INH are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SOGECLAIR reported solid returns over the last few months and may actually be approaching a breakup point.

Haverty Furniture

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Haverty Furniture Companies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Haverty Furniture reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SOGECLAIR and Haverty Furniture

The main advantage of trading using opposite SOGECLAIR and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR 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 SOGECLAIR SA INH 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.