Correlation Between Home Depot and Kaiser
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By analyzing existing cross correlation between Home Depot and Kaiser Permanente, you can compare the effects of market volatilities on Home Depot and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Kaiser.
Diversification Opportunities for Home Depot and Kaiser
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Home and Kaiser is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Home Depot i.e., Home Depot and Kaiser go up and down completely randomly.
Pair Corralation between Home Depot and Kaiser
Allowing for the 90-day total investment horizon Home Depot is expected to generate 0.91 times more return on investment than Kaiser. However, Home Depot is 1.1 times less risky than Kaiser. It trades about 0.31 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.06 per unit of risk. If you would invest 39,053 in Home Depot on September 2, 2024 and sell it today you would earn a total of 3,860 from holding Home Depot or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Home Depot vs. Kaiser Permanente
Performance |
| Timeline |
| Home Depot |
| Kaiser Permanente |
Home Depot and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Kaiser
The main advantage of trading using opposite Home Depot and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser'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 |
| Kaiser vs. AEP TEX INC | Kaiser vs. US BANK NATIONAL | Kaiser vs. FactSet Research Systems | Kaiser vs. Aurora Innovation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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