Correlation Between LL Flooring and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both LL Flooring 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 LL Flooring and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LL Flooring Holdings and Haverty Furniture Companies, you can compare the effects of market volatilities on LL Flooring 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 LL Flooring with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of LL Flooring and Haverty Furniture.
Diversification Opportunities for LL Flooring and Haverty Furniture
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LL Flooring and Haverty is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding LL Flooring Holdings and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and LL Flooring 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 LL Flooring Holdings 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 LL Flooring i.e., LL Flooring and Haverty Furniture go up and down completely randomly.
Pair Corralation between LL Flooring and Haverty Furniture
Allowing for the 90-day total investment horizon LL Flooring Holdings is expected to under-perform the Haverty Furniture. In addition to that, LL Flooring is 1.33 times more volatile than Haverty Furniture Companies. It trades about -0.33 of its total potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.03 per unit of volatility. If you would invest 3,468 in Haverty Furniture Companies on January 26, 2024 and sell it today you would lose (213.00) from holding Haverty Furniture Companies or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LL Flooring Holdings vs. Haverty Furniture Companies
Performance |
| Timeline |
| LL Flooring Holdings |
| Haverty Furniture |
LL Flooring and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LL Flooring and Haverty Furniture
The main advantage of trading using opposite LL Flooring and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LL Flooring 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.| LL Flooring vs. Haverty Furniture Companies | LL Flooring vs. Arhaus Inc | LL Flooring vs. Tile Shop Holdings | LL Flooring vs. Floor Decor Holdings |
| Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. LL Flooring Holdings | Haverty Furniture vs. Kirklands |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |