Correlation Between Haverty Furniture and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and JBG SMITH 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 JBG SMITH 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 JBG SMITH Properties, you can compare the effects of market volatilities on Haverty Furniture and JBG SMITH 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 JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and JBG SMITH.
Diversification Opportunities for Haverty Furniture and JBG SMITH
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haverty and JBG is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties 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 JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and JBG SMITH go up and down completely randomly.
Pair Corralation between Haverty Furniture and JBG SMITH
Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the JBG SMITH. In addition to that, Haverty Furniture is 1.51 times more volatile than JBG SMITH Properties. It trades about -0.03 of its total potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.07 per unit of volatility. If you would invest 1,447 in JBG SMITH Properties on September 14, 2024 and sell it today you would earn a total of 184.00 from holding JBG SMITH Properties or generate 12.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Haverty Furniture Companies vs. JBG SMITH Properties
Performance |
Timeline |
Haverty Furniture |
JBG SMITH Properties |
Haverty Furniture and JBG SMITH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haverty Furniture and JBG SMITH
The main advantage of trading using opposite Haverty Furniture and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.Haverty Furniture vs. Floor Decor Holdings | Haverty Furniture vs. Live Ventures | Haverty Furniture vs. Home Depot | Haverty Furniture vs. Lowes Companies |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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