Correlation Between Home Depot and BBLTB
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By analyzing existing cross correlation between Home Depot and BBLTB 3733 25 SEP 34, you can compare the effects of market volatilities on Home Depot and BBLTB 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 BBLTB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and BBLTB.
Diversification Opportunities for Home Depot and BBLTB
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and BBLTB is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and BBLTB 3733 25 SEP 34 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBLTB 3733 25 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 BBLTB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBLTB 3733 25 has no effect on the direction of Home Depot i.e., Home Depot and BBLTB go up and down completely randomly.
Pair Corralation between Home Depot and BBLTB
Allowing for the 90-day total investment horizon Home Depot is expected to generate 0.76 times more return on investment than BBLTB. However, Home Depot is 1.32 times less risky than BBLTB. It trades about 0.29 of its potential returns per unit of risk. BBLTB 3733 25 SEP 34 is currently generating about -0.33 per unit of risk. If you would invest 39,350 in Home Depot on September 3, 2024 and sell it today you would earn a total of 3,563 from holding Home Depot or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Home Depot vs. BBLTB 3733 25 SEP 34
Performance |
| Timeline |
| Home Depot |
| BBLTB 3733 25 |
Home Depot and BBLTB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and BBLTB
The main advantage of trading using opposite Home Depot and BBLTB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, BBLTB 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 BBLTB will offset losses from the drop in BBLTB's long position.| Home Depot vs. Partner Communications | Home Depot vs. Merck Company | Home Depot vs. Western Midstream Partners | Home Depot vs. Edgewise Therapeutics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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