Correlation Between Haverty Furniture and Covenant Logistics

Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and Covenant Logistics 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 Covenant Logistics 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 Covenant Logistics Group,, you can compare the effects of market volatilities on Haverty Furniture and Covenant Logistics 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 Covenant Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and Covenant Logistics.

Diversification Opportunities for Haverty Furniture and Covenant Logistics

0.89

Correlation Coefficient

Haverty Furniture  Covenant Logistics

Very poor diversification

The 3 months correlation between Haverty and Covenant is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Covenant Logistics Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covenant Logistics Group, 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 Covenant Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covenant Logistics Group, has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Covenant Logistics go up and down completely randomly.

Pair Corralation between Haverty Furniture and Covenant Logistics

Considering the 90-day investment horizon Haverty Furniture Companies is expected to under-perform the Covenant Logistics. In addition to that, Haverty Furniture is 1.04 times more volatile than Covenant Logistics Group,. It trades about -0.15 of its total potential returns per unit of risk. Covenant Logistics Group, is currently generating about -0.14 per unit of volatility. If you would invest  2,501  in Covenant Logistics Group, on May 6, 2025 and sell it today you would lose (174.00) from holding Covenant Logistics Group, or give up 6.96% of portfolio value over 90 days.

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

Haverty Furniture Companies  vs.  Covenant Logistics Group,

Haverty Furniture

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Haverty Furniture Companies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Haverty Furniture may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Covenant Logistics Group,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Covenant Logistics Group, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Covenant Logistics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haverty Furniture and Covenant Logistics

The main advantage of trading using opposite Haverty Furniture and Covenant Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, Covenant Logistics 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 Covenant Logistics will offset losses from the drop in Covenant Logistics' long position.

The idea behind Haverty Furniture Companies and Covenant Logistics Group, 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.