Correlation Between Home Depot and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both Home Depot and Accesso Technology 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 Home Depot and Accesso Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Accesso Technology Group, you can compare the effects of market volatilities on Home Depot and Accesso Technology 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 Home Depot with a short position of Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Accesso Technology.
Diversification Opportunities for Home Depot and Accesso Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Home and Accesso is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology and Home Depot 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 Home Depot are associated (or correlated) with Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Home Depot i.e., Home Depot and Accesso Technology go up and down completely randomly.
Pair Corralation between Home Depot and Accesso Technology
Assuming the 90 days trading horizon Home Depot is expected to generate 0.05 times more return on investment than Accesso Technology. However, Home Depot is 19.71 times less risky than Accesso Technology. It trades about 0.13 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.07 per unit of risk. If you would invest 17,410 in Home Depot on October 18, 2024 and sell it today you would earn a total of 447.00 from holding Home Depot or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
Home Depot vs. Accesso Technology Group
Performance |
| Timeline |
| Home Depot |
| Accesso Technology |
Home Depot and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Accesso Technology
The main advantage of trading using opposite Home Depot and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| Home Depot vs. First Majestic Silver | Home Depot vs. Blackrock World Mining | Home Depot vs. Air Products Chemicals | Home Depot vs. Fortuna Silver Mines |
| Accesso Technology vs. Home Depot | Accesso Technology vs. Charter Communications Cl | Accesso Technology vs. Tatton Asset Management | Accesso Technology vs. Impax Asset Management |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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