Correlation Between Home Depot and AMGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Home Depot and AMGEN INC 44, you can compare the effects of market volatilities on Home Depot and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and AMGEN.
Diversification Opportunities for Home Depot and AMGEN
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Home and AMGEN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of Home Depot i.e., Home Depot and AMGEN go up and down completely randomly.
Pair Corralation between Home Depot and AMGEN
Allowing for the 90-day total investment horizon Home Depot is expected to generate 1.5 times more return on investment than AMGEN. However, Home Depot is 1.5 times more volatile than AMGEN INC 44. It trades about 0.3 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about 0.15 per unit of risk. If you would invest 39,169 in Home Depot on September 1, 2024 and sell it today you would earn a total of 3,744 from holding Home Depot or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Depot vs. AMGEN INC 44
Performance |
| Timeline |
| Home Depot |
| AMGEN INC 44 |
Home Depot and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and AMGEN
The main advantage of trading using opposite Home Depot and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN'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 |
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
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |