Correlation Between Haverty Furniture and Getty Images
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Getty Images 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 Haverty Furniture and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haverty Furniture Companies and Getty Images Holdings, you can compare the effects of market volatilities on Haverty Furniture and Getty Images 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 Haverty Furniture with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Getty Images.
Diversification Opportunities for Haverty Furniture and Getty Images
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haverty and Getty is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings and Haverty Furniture 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 Haverty Furniture Companies are associated (or correlated) with Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Getty Images go up and down completely randomly.
Pair Corralation between Haverty Furniture and Getty Images
Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the Getty Images. But the stock apears to be less risky and, when comparing its historical volatility, Haverty Furniture Companies is 1.05 times less risky than Getty Images. The stock trades about -0.17 of its potential returns per unit of risk. The Getty Images Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 397.00 in Getty Images Holdings on February 4, 2024 and sell it today you would earn a total of 0.00 from holding Getty Images Holdings or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Haverty Furniture Companies vs. Getty Images Holdings
Performance |
Timeline |
Haverty Furniture |
Getty Images Holdings |
Haverty Furniture and Getty Images Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haverty Furniture and Getty Images
The main advantage of trading using opposite Haverty Furniture and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. LL Flooring Holdings | Haverty Furniture vs. Kirklands |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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