Correlation Between Home Depot and HALLIBURTON
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By analyzing existing cross correlation between Home Depot and HALLIBURTON 475 percent, you can compare the effects of market volatilities on Home Depot and HALLIBURTON 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 HALLIBURTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and HALLIBURTON.
Diversification Opportunities for Home Depot and HALLIBURTON
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and HALLIBURTON is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and HALLIBURTON 475 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALLIBURTON 475 percent 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 HALLIBURTON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALLIBURTON 475 percent has no effect on the direction of Home Depot i.e., Home Depot and HALLIBURTON go up and down completely randomly.
Pair Corralation between Home Depot and HALLIBURTON
Allowing for the 90-day total investment horizon Home Depot is expected to under-perform the HALLIBURTON. In addition to that, Home Depot is 1.03 times more volatile than HALLIBURTON 475 percent. It trades about -0.29 of its total potential returns per unit of risk. HALLIBURTON 475 percent is currently generating about 0.11 per unit of volatility. If you would invest 8,762 in HALLIBURTON 475 percent on November 28, 2024 and sell it today you would earn a total of 261.00 from holding HALLIBURTON 475 percent or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Depot vs. HALLIBURTON 475 percent
Performance |
| Timeline |
| Home Depot |
| HALLIBURTON 475 percent |
Home Depot and HALLIBURTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and HALLIBURTON
The main advantage of trading using opposite Home Depot and HALLIBURTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, HALLIBURTON 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 HALLIBURTON will offset losses from the drop in HALLIBURTON'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 |
| HALLIBURTON vs. Alternative Investment | HALLIBURTON vs. Nasdaq Inc | HALLIBURTON vs. Tradeweb Markets | HALLIBURTON vs. Sea |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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