Correlation Between Komercni Banka and Home Depot

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

Diversification Opportunities for Komercni Banka and Home Depot

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Komercni and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Komercni Banka 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 Komercni Banka are associated (or correlated) with Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of Komercni Banka i.e., Komercni Banka and Home Depot go up and down completely randomly.

Pair Corralation between Komercni Banka and Home Depot

If you would invest  17,632  in Home Depot on August 31, 2024 and sell it today you would earn a total of  225.00  from holding Home Depot or generate 1.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Komercni Banka  vs.  Home Depot

 Performance 
       Timeline  
Komercni Banka 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Komercni Banka has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Komercni Banka is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Home Depot 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Home Depot is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Komercni Banka and Home Depot Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Komercni Banka and Home Depot

The main advantage of trading using opposite Komercni Banka and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, Home Depot 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 Home Depot will offset losses from the drop in Home Depot's long position.
The idea behind Komercni Banka and Home Depot 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity