Correlation Between G III and HAVERTY FURNITURE

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

By analyzing existing cross correlation between G III Apparel Group and HAVERTY FURNITURE A, you can compare the effects of market volatilities on G III 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 G III with a short position of HAVERTY FURNITURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and HAVERTY FURNITURE.

Diversification Opportunities for G III and HAVERTY FURNITURE

-0.14

Correlation Coefficient

G III  HAVERTY FURNITURE

Good diversification

The 3 months correlation between GI4 and HAVERTY is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and HAVERTY FURNITURE A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVERTY FURNITURE and G III 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 G III Apparel Group 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 G III i.e., G III and HAVERTY FURNITURE go up and down completely randomly.

Pair Corralation between G III and HAVERTY FURNITURE

Assuming the 90 days trading horizon G III Apparel Group is expected to under-perform the HAVERTY FURNITURE. In addition to that, G III is 1.12 times more volatile than HAVERTY FURNITURE A. It trades about -0.03 of its total potential returns per unit of risk. HAVERTY FURNITURE A is currently generating about 0.13 per unit of volatility. If you would invest  1,389  in HAVERTY FURNITURE A on April 24, 2025 and sell it today you would earn a total of  311.00  from holding HAVERTY FURNITURE A or generate 22.39% return on investment over 90 days.

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

G III Apparel Group  vs.  HAVERTY FURNITURE A

G III Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days G III Apparel Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

HAVERTY FURNITURE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HAVERTY FURNITURE A are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, HAVERTY FURNITURE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with G III and HAVERTY FURNITURE

The main advantage of trading using opposite G III and HAVERTY FURNITURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III 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 G III Apparel Group and HAVERTY FURNITURE A 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.