Correlation Between Home Depot and IFCCN
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By analyzing existing cross correlation between Home Depot and IFCCN 5459 22 SEP 32, you can compare the effects of market volatilities on Home Depot and IFCCN 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 IFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and IFCCN.
Diversification Opportunities for Home Depot and IFCCN
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and IFCCN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and IFCCN 5459 22 SEP 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFCCN 5459 22 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 IFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFCCN 5459 22 has no effect on the direction of Home Depot i.e., Home Depot and IFCCN go up and down completely randomly.
Pair Corralation between Home Depot and IFCCN
Allowing for the 90-day total investment horizon Home Depot is expected to generate 0.56 times more return on investment than IFCCN. However, Home Depot is 1.79 times less risky than IFCCN. It trades about 0.23 of its potential returns per unit of risk. IFCCN 5459 22 SEP 32 is currently generating about -0.02 per unit of risk. If you would invest 36,283 in Home Depot on September 2, 2024 and sell it today you would earn a total of 6,630 from holding Home Depot or generate 18.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.69% |
| Values | Daily Returns |
Home Depot vs. IFCCN 5459 22 SEP 32
Performance |
| Timeline |
| Home Depot |
| IFCCN 5459 22 |
Home Depot and IFCCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and IFCCN
The main advantage of trading using opposite Home Depot and IFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, IFCCN 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 IFCCN will offset losses from the drop in IFCCN'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 |
| IFCCN vs. United States Steel | IFCCN vs. Allegheny Technologies Incorporated | IFCCN vs. Pure Cycle | IFCCN vs. PGE 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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