Correlation Between LESLIES INC and Home Depot
Can any of the company-specific risk be diversified away by investing in both LESLIES INC and Home Depot at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LESLIES INC and Home Depot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESLIES INC DL and The Home Depot, you can compare the effects of market volatilities on LESLIES INC and Home Depot 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 LESLIES INC with a short position of Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESLIES INC and Home Depot.
Diversification Opportunities for LESLIES INC and Home Depot
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LESLIES and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LESLIES INC DL and The Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and LESLIES INC 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 LESLIES INC DL are associated (or correlated) with Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of LESLIES INC i.e., LESLIES INC and Home Depot go up and down completely randomly.
Pair Corralation between LESLIES INC and Home Depot
If you would invest 28,796 in The Home Depot on September 3, 2024 and sell it today you would earn a total of 11,939 from holding The Home Depot or generate 41.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LESLIES INC DL vs. The Home Depot
Performance |
| Timeline |
| LESLIES INC DL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Home Depot |
LESLIES INC and Home Depot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESLIES INC and Home Depot
The main advantage of trading using opposite LESLIES INC and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESLIES INC position performs unexpectedly, Home Depot 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 Home Depot will offset losses from the drop in Home Depot's long position.| LESLIES INC vs. Thai Beverage Public | LESLIES INC vs. CAL MAINE FOODS | LESLIES INC vs. YATRA ONLINE DL 0001 | LESLIES INC vs. Gruppo Mutuionline SpA |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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