Correlation Between Home Depot and 03740LAF9
Specify exactly 2 symbols:
By analyzing existing cross correlation between Home Depot and AON 5 12 SEP 32, you can compare the effects of market volatilities on Home Depot and 03740LAF9 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 03740LAF9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and 03740LAF9.
Diversification Opportunities for Home Depot and 03740LAF9
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Home and 03740LAF9 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and AON 5 12 SEP 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 03740LAF9 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 03740LAF9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 03740LAF9 has no effect on the direction of Home Depot i.e., Home Depot and 03740LAF9 go up and down completely randomly.
Pair Corralation between Home Depot and 03740LAF9
Allowing for the 90-day total investment horizon Home Depot is expected to generate 1.82 times more return on investment than 03740LAF9. However, Home Depot is 1.82 times more volatile than AON 5 12 SEP 32. It trades about 0.09 of its potential returns per unit of risk. AON 5 12 SEP 32 is currently generating about -0.01 per unit of risk. If you would invest 28,648 in Home Depot on September 1, 2024 and sell it today you would earn a total of 14,265 from holding Home Depot or generate 49.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
Home Depot vs. AON 5 12 SEP 32
Performance |
| Timeline |
| Home Depot |
| 03740LAF9 |
Home Depot and 03740LAF9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and 03740LAF9
The main advantage of trading using opposite Home Depot and 03740LAF9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, 03740LAF9 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 03740LAF9 will offset losses from the drop in 03740LAF9'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 |
| 03740LAF9 vs. SEI Investments | 03740LAF9 vs. Nomura Holdings ADR | 03740LAF9 vs. Meiwu Technology Co | 03740LAF9 vs. Stepstone Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |