Correlation Between Home Depot and AgileThought
Can any of the company-specific risk be diversified away by investing in both Home Depot and AgileThought 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 AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and AgileThought, you can compare the effects of market volatilities on Home Depot and AgileThought 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 AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and AgileThought.
Diversification Opportunities for Home Depot and AgileThought
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Home and AgileThought is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought 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 AgileThought. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgileThought has no effect on the direction of Home Depot i.e., Home Depot and AgileThought go up and down completely randomly.
Pair Corralation between Home Depot and AgileThought
If you would invest 37,044 in Home Depot on August 28, 2024 and sell it today you would earn a total of 5,908 from holding Home Depot or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Home Depot vs. AgileThought
Performance |
| Timeline |
| Home Depot |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Home Depot and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and AgileThought
The main advantage of trading using opposite Home Depot and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, AgileThought 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 AgileThought will offset losses from the drop in AgileThought's long position.| Home Depot vs. Arhaus Inc | Home Depot vs. Haverty Furniture Companies | Home Depot vs. Kirklands | Home Depot vs. Haverty Furniture Companies |
| AgileThought vs. Genpact Limited | AgileThought vs. ExlService Holdings | AgileThought vs. Science Applications International | AgileThought vs. CLARIVATE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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