Correlation Between CeoTronics and Haverty Furniture

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CeoTronics 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 CeoTronics and Haverty Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and Haverty Furniture Companies, you can compare the effects of market volatilities on CeoTronics 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 CeoTronics with a short position of Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and Haverty Furniture.

Diversification Opportunities for CeoTronics and Haverty Furniture

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between CeoTronics and Haverty is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture and CeoTronics 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 CeoTronics AG 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 CeoTronics i.e., CeoTronics and Haverty Furniture go up and down completely randomly.

Pair Corralation between CeoTronics and Haverty Furniture

Assuming the 90 days trading horizon CeoTronics AG is expected to generate 1.69 times more return on investment than Haverty Furniture. However, CeoTronics is 1.69 times more volatile than Haverty Furniture Companies. It trades about 0.16 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about -0.11 per unit of risk. If you would invest  525.00  in CeoTronics AG on September 25, 2024 and sell it today you would earn a total of  65.00  from holding CeoTronics AG or generate 12.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CeoTronics AG  vs.  Haverty Furniture Companies

 Performance 
       Timeline  
CeoTronics AG 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in CeoTronics AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward-looking signals, CeoTronics unveiled solid returns over the last few months and may actually be approaching a breakup point.
Haverty Furniture 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Haverty Furniture Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CeoTronics and Haverty Furniture Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CeoTronics and Haverty Furniture

The main advantage of trading using opposite CeoTronics and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics 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 CeoTronics AG 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.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites