Correlation Between Home Depot and Aceragen
Can any of the company-specific risk be diversified away by investing in both Home Depot and Aceragen 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 Aceragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Aceragen, you can compare the effects of market volatilities on Home Depot and Aceragen 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 Aceragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Aceragen.
Diversification Opportunities for Home Depot and Aceragen
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Aceragen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Aceragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aceragen 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 Aceragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aceragen has no effect on the direction of Home Depot i.e., Home Depot and Aceragen go up and down completely randomly.
Pair Corralation between Home Depot and Aceragen
If you would invest 40,097 in Home Depot on September 13, 2024 and sell it today you would earn a total of 2,041 from holding Home Depot or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Home Depot vs. Aceragen
Performance |
| Timeline |
| Home Depot |
| Aceragen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Home Depot and Aceragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Aceragen
The main advantage of trading using opposite Home Depot and Aceragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Aceragen 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 Aceragen will offset losses from the drop in Aceragen's long position.| Home Depot vs. Aquagold International | Home Depot vs. Thrivent High Yield | Home Depot vs. Morningstar Unconstrained Allocation | Home Depot vs. Via Renewables |
| Aceragen vs. Addex Therapeutics | Aceragen vs. Soligenix | Aceragen vs. Avenue Therapeutics | Aceragen vs. Akari Therapeutics PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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