Correlation Between Haverty Furniture and Sadot

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

Diversification Opportunities for Haverty Furniture and Sadot

-0.56

Correlation Coefficient

Haverty Furniture  Sadot

Excellent diversification

The 3 months correlation between Haverty and Sadot is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot 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 Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and Sadot go up and down completely randomly.

Pair Corralation between Haverty Furniture and Sadot

Considering the 90-day investment horizon Haverty Furniture Companies is expected to generate 0.37 times more return on investment than Sadot. However, Haverty Furniture Companies is 2.68 times less risky than Sadot. It trades about 0.11 of its potential returns per unit of risk. Sadot Group is currently generating about 0.03 per unit of risk. If you would invest  1,803  in Haverty Furniture Companies on April 24, 2025 and sell it today you would earn a total of  291.00  from holding Haverty Furniture Companies or generate 16.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Haverty Furniture Companies  vs.  Sadot Group

Haverty Furniture

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Haverty Furniture Companies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Haverty Furniture unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sadot Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sadot Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Sadot unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haverty Furniture and Sadot

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

The idea behind Haverty Furniture Companies and Sadot 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.