Correlation Between ASM Pacific and HAVERTY FURNITURE
Can any of the company-specific risk be diversified away by investing in both ASM Pacific 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 ASM Pacific and HAVERTY FURNITURE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASM Pacific Technology and HAVERTY FURNITURE A, you can compare the effects of market volatilities on ASM Pacific 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 ASM Pacific with a short position of HAVERTY FURNITURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASM Pacific and HAVERTY FURNITURE.
Diversification Opportunities for ASM Pacific and HAVERTY FURNITURE
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASM and HAVERTY is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ASM Pacific Technology and HAVERTY FURNITURE A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVERTY FURNITURE and ASM Pacific 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 ASM Pacific Technology 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 ASM Pacific i.e., ASM Pacific and HAVERTY FURNITURE go up and down completely randomly.
Pair Corralation between ASM Pacific and HAVERTY FURNITURE
Assuming the 90 days trading horizon ASM Pacific Technology is expected to generate 0.84 times more return on investment than HAVERTY FURNITURE. However, ASM Pacific Technology is 1.19 times less risky than HAVERTY FURNITURE. It trades about 0.18 of its potential returns per unit of risk. HAVERTY FURNITURE A is currently generating about 0.13 per unit of risk. If you would invest 534.00 in ASM Pacific Technology on April 22, 2025 and sell it today you would earn a total of 161.00 from holding ASM Pacific Technology or generate 30.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ASM Pacific Technology vs. HAVERTY FURNITURE A
Performance |
Timeline |
ASM Pacific Technology |
HAVERTY FURNITURE |
ASM Pacific and HAVERTY FURNITURE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASM Pacific and HAVERTY FURNITURE
The main advantage of trading using opposite ASM Pacific and HAVERTY FURNITURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASM Pacific 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.ASM Pacific vs. Fuji Media Holdings | ASM Pacific vs. Hellenic Telecommunications Organization | ASM Pacific vs. SQUIRREL MEDIA SA | ASM Pacific vs. SmarTone Telecommunications Holdings |
HAVERTY FURNITURE vs. Universal Health Realty | HAVERTY FURNITURE vs. Wenzhou Kangning Hospital | HAVERTY FURNITURE vs. Evolent Health | HAVERTY FURNITURE vs. Phibro Animal Health |
Check out your portfolio center.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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