Correlation Between Home Depot and 264399DK9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Home Depot and 264399DK9 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 264399DK9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and DUKE PWR LLC, you can compare the effects of market volatilities on Home Depot and 264399DK9 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 264399DK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and 264399DK9.

Diversification Opportunities for Home Depot and 264399DK9

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Home and 264399DK9 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and DUKE PWR LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE PWR LLC 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 264399DK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE PWR LLC has no effect on the direction of Home Depot i.e., Home Depot and 264399DK9 go up and down completely randomly.

Pair Corralation between Home Depot and 264399DK9

Allowing for the 90-day total investment horizon Home Depot is expected to generate 1.58 times more return on investment than 264399DK9. However, Home Depot is 1.58 times more volatile than DUKE PWR LLC. It trades about 0.04 of its potential returns per unit of risk. DUKE PWR LLC is currently generating about 0.0 per unit of risk. If you would invest  27,938  in Home Depot on January 16, 2025 and sell it today you would earn a total of  7,473  from holding Home Depot or generate 26.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy92.32%
ValuesDaily Returns

Home Depot  vs.  DUKE PWR LLC

 Performance 
       Timeline  
Home Depot 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
DUKE PWR LLC 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in DUKE PWR LLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 264399DK9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Home Depot and 264399DK9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Home Depot and 264399DK9

The main advantage of trading using opposite Home Depot and 264399DK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, 264399DK9 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 264399DK9 will offset losses from the drop in 264399DK9's long position.
Home Depot vs. Ameritrans Capital Corp
Home Depot vs. MicroAlgo
Home Depot vs. Summa Silver Corp
Home Depot vs. Invesco California Value
The idea behind Home Depot and DUKE PWR LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
264399DK9 vs. AEP TEX INC
264399DK9 vs. Telia Company AB
264399DK9 vs. JD Inc Adr
264399DK9 vs. Consolidated Edison
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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY