Correlation Between Home Depot and Curis
Can any of the company-specific risk be diversified away by investing in both Home Depot and Curis 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 Curis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Curis Inc, you can compare the effects of market volatilities on Home Depot and Curis 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 Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Curis.
Diversification Opportunities for Home Depot and Curis
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Curis is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc 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 Curis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curis Inc has no effect on the direction of Home Depot i.e., Home Depot and Curis go up and down completely randomly.
Pair Corralation between Home Depot and Curis
Allowing for the 90-day total investment horizon Home Depot is expected to generate 0.4 times more return on investment than Curis. However, Home Depot is 2.48 times less risky than Curis. It trades about 0.19 of its potential returns per unit of risk. Curis Inc is currently generating about -0.21 per unit of risk. If you would invest 40,289 in Home Depot on August 29, 2024 and sell it today you would earn a total of 2,663 from holding Home Depot or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Depot vs. Curis Inc
Performance |
| Timeline |
| Home Depot |
| Curis Inc |
Home Depot and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Curis
The main advantage of trading using opposite Home Depot and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Curis 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 Curis will offset losses from the drop in Curis' long position.| Home Depot vs. Floor Decor Holdings | Home Depot vs. Arhaus Inc | Home Depot vs. Haverty Furniture Companies | Home Depot vs. Lowes Companies |
| Curis vs. Aileron Therapeutics | Curis vs. Artelo Biosciences | Curis vs. Histogen | Curis vs. X4 Pharmaceuticals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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