Correlation Between HOME DEPOT and Stakeholder Gold
Can any of the company-specific risk be diversified away by investing in both HOME DEPOT and Stakeholder Gold 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 Stakeholder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOME DEPOT CDR and Stakeholder Gold Corp, you can compare the effects of market volatilities on HOME DEPOT and Stakeholder Gold 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 Stakeholder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOME DEPOT and Stakeholder Gold.
Diversification Opportunities for HOME DEPOT and Stakeholder Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOME and Stakeholder is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HOME DEPOT CDR and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp 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 CDR are associated (or correlated) with Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of HOME DEPOT i.e., HOME DEPOT and Stakeholder Gold go up and down completely randomly.
Pair Corralation between HOME DEPOT and Stakeholder Gold
Assuming the 90 days trading horizon HOME DEPOT CDR is expected to generate 0.31 times more return on investment than Stakeholder Gold. However, HOME DEPOT CDR is 3.18 times less risky than Stakeholder Gold. It trades about 0.25 of its potential returns per unit of risk. Stakeholder Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 2,543 in HOME DEPOT CDR on September 4, 2024 and sell it today you would earn a total of 211.00 from holding HOME DEPOT CDR or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HOME DEPOT CDR vs. Stakeholder Gold Corp
Performance |
| Timeline |
| HOME DEPOT CDR |
| Stakeholder Gold Corp |
HOME DEPOT and Stakeholder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOME DEPOT and Stakeholder Gold
The main advantage of trading using opposite HOME DEPOT and Stakeholder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOME DEPOT position performs unexpectedly, Stakeholder Gold 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 Stakeholder Gold will offset losses from the drop in Stakeholder Gold's long position.| HOME DEPOT vs. Walmart Inc CDR | HOME DEPOT vs. Amazon CDR | HOME DEPOT vs. UPS CDR | HOME DEPOT vs. UnitedHealth Group CDR |
| Stakeholder Gold vs. First Majestic Silver | Stakeholder Gold vs. Ivanhoe Energy | Stakeholder Gold vs. Orezone Gold Corp | Stakeholder Gold vs. Faraday Copper Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |