Correlation Between Home Depot and COMCAST
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By analyzing existing cross correlation between Home Depot and COMCAST PORATION, you can compare the effects of market volatilities on Home Depot and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and COMCAST.
Diversification Opportunities for Home Depot and COMCAST
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Home and COMCAST is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and COMCAST PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST PORATION 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST PORATION has no effect on the direction of Home Depot i.e., Home Depot and COMCAST go up and down completely randomly.
Pair Corralation between Home Depot and COMCAST
Allowing for the 90-day total investment horizon Home Depot is expected to generate 3.97 times more return on investment than COMCAST. However, Home Depot is 3.97 times more volatile than COMCAST PORATION. It trades about 0.09 of its potential returns per unit of risk. COMCAST PORATION is currently generating about 0.0 per unit of risk. If you would invest 28,986 in Home Depot on September 2, 2024 and sell it today you would earn a total of 13,927 from holding Home Depot or generate 48.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.92% |
| Values | Daily Returns |
Home Depot vs. COMCAST PORATION
Performance |
| Timeline |
| Home Depot |
| COMCAST PORATION |
Home Depot and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and COMCAST
The main advantage of trading using opposite Home Depot and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST'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 |
| COMCAST vs. Sellas Life Sciences | COMCAST vs. Iridium Communications | COMCAST vs. Mink Therapeutics | COMCAST vs. Grupo Televisa SAB |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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