Correlation Between Haverty Furniture and HNI Corp

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

Diversification Opportunities for Haverty Furniture and HNI Corp

0.86

Correlation Coefficient

Haverty Furniture  HNI Corp

Very poor diversification

The 3 months correlation between Haverty and HNI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp 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 HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and HNI Corp go up and down completely randomly.

Pair Corralation between Haverty Furniture and HNI Corp

Considering the 90-day investment horizon Haverty Furniture is expected to generate 1.48 times less return on investment than HNI Corp. In addition to that, Haverty Furniture is 1.44 times more volatile than HNI Corp. It trades about 0.07 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.16 per unit of volatility. If you would invest  4,312  in HNI Corp on May 6, 2025 and sell it today you would earn a total of  750.00  from holding HNI Corp or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Haverty Furniture Companies  vs.  HNI Corp

Haverty Furniture

Risk-Adjusted Performance

Modest

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.

HNI Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HNI Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, HNI Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haverty Furniture and HNI Corp

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

The idea behind Haverty Furniture Companies and HNI Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.