Correlation Between Home Depot and 28622HAC5
Specify exactly 2 symbols:
By analyzing existing cross correlation between Home Depot and ELV 5125 15 FEB 53, you can compare the effects of market volatilities on Home Depot and 28622HAC5 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 28622HAC5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and 28622HAC5.
Diversification Opportunities for Home Depot and 28622HAC5
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and 28622HAC5 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and ELV 5125 15 FEB 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELV 5125 15 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 28622HAC5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELV 5125 15 has no effect on the direction of Home Depot i.e., Home Depot and 28622HAC5 go up and down completely randomly.
Pair Corralation between Home Depot and 28622HAC5
Allowing for the 90-day total investment horizon Home Depot is expected to generate 0.9 times more return on investment than 28622HAC5. However, Home Depot is 1.12 times less risky than 28622HAC5. It trades about 0.16 of its potential returns per unit of risk. ELV 5125 15 FEB 53 is currently generating about 0.11 per unit of risk. If you would invest 39,891 in Home Depot on August 26, 2024 and sell it today you would earn a total of 2,109 from holding Home Depot or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Home Depot vs. ELV 5125 15 FEB 53
Performance |
| Timeline |
| Home Depot |
| ELV 5125 15 |
Home Depot and 28622HAC5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and 28622HAC5
The main advantage of trading using opposite Home Depot and 28622HAC5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, 28622HAC5 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 28622HAC5 will offset losses from the drop in 28622HAC5's long position.| Home Depot vs. Arhaus Inc | Home Depot vs. Haverty Furniture Companies | Home Depot vs. Kirklands | Home Depot vs. Haverty Furniture Companies |
| 28622HAC5 vs. AEP TEX INC | 28622HAC5 vs. US BANK NATIONAL | 28622HAC5 vs. 3M Company | 28622HAC5 vs. Alcoa Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |