Correlation Between Home Depot and Satellogic Warrant
Can any of the company-specific risk be diversified away by investing in both Home Depot and Satellogic Warrant 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 Satellogic Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Satellogic Warrant, you can compare the effects of market volatilities on Home Depot and Satellogic Warrant 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 Satellogic Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Satellogic Warrant.
Diversification Opportunities for Home Depot and Satellogic Warrant
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Home and Satellogic is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant 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 Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Home Depot i.e., Home Depot and Satellogic Warrant go up and down completely randomly.
Pair Corralation between Home Depot and Satellogic Warrant
Allowing for the 90-day total investment horizon Home Depot is expected to generate 239.95 times less return on investment than Satellogic Warrant. But when comparing it to its historical volatility, Home Depot is 103.84 times less risky than Satellogic Warrant. It trades about 0.06 of its potential returns per unit of risk. Satellogic Warrant is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Satellogic Warrant on August 30, 2024 and sell it today you would lose (13.02) from holding Satellogic Warrant or give up 59.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.64% |
| Values | Daily Returns |
Home Depot vs. Satellogic Warrant
Performance |
| Timeline |
| Home Depot |
| Satellogic Warrant |
Home Depot and Satellogic Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Satellogic Warrant
The main advantage of trading using opposite Home Depot and Satellogic Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Satellogic Warrant 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 Satellogic Warrant will offset losses from the drop in Satellogic Warrant's long position.| Home Depot vs. Floor Decor Holdings | Home Depot vs. Arhaus Inc | Home Depot vs. Haverty Furniture Companies | Home Depot vs. Lowes Companies |
| Satellogic Warrant vs. Satellogic V | Satellogic Warrant vs. Revelation Biosciences | Satellogic Warrant vs. Cepton Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |