Home Depot (Mexico) Market Value
| HD Stock | MXN 8,731 61.03 0.69% |
| Symbol | Home |
Home Depot 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Home Depot's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Home Depot.
| 06/03/2024 |
| 11/30/2024 |
If you would invest 0.00 in Home Depot on June 3, 2024 and sell it all today you would earn a total of 0.00 from holding The Home Depot or generate 0.0% return on investment in Home Depot over 180 days. Home Depot is related to or competes with Deutsche Bank, First Republic, Monster Beverage, Grupo Hotelero, Micron Technology, and KB Home. The Home Depot, Inc. operates as a home improvement retailer More
Home Depot Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Home Depot's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess The Home Depot upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.24 | |||
| Information Ratio | 0.1401 | |||
| Maximum Drawdown | 7.23 | |||
| Value At Risk | (1.56) | |||
| Potential Upside | 2.63 |
Home Depot Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Home Depot's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Home Depot's standard deviation. In reality, there are many statistical measures that can use Home Depot historical prices to predict the future Home Depot's volatility.| Risk Adjusted Performance | 0.1965 | |||
| Jensen Alpha | 0.2844 | |||
| Total Risk Alpha | 0.0946 | |||
| Sortino Ratio | 0.1387 | |||
| Treynor Ratio | 2.54 |
Home Depot Backtested Returns
Home Depot appears to be very steady, given 3 months investment horizon. Home Depot holds Efficiency (Sharpe) Ratio of 0.23, which attests that the entity had a 0.23% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Home Depot, which you can use to evaluate the volatility of the firm. Please utilize Home Depot's Downside Deviation of 1.24, market risk adjusted performance of 2.55, and Risk Adjusted Performance of 0.1965 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Home Depot holds a performance score of 18. The company retains a Market Volatility (i.e., Beta) of 0.12, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Home Depot's returns are expected to increase less than the market. However, during the bear market, the loss of holding Home Depot is expected to be smaller as well. Please check Home Depot's value at risk, and the relationship between the jensen alpha and skewness , to make a quick decision on whether Home Depot's current trending patterns will revert.
Auto-correlation | 0.71 |
Good predictability
The Home Depot has good predictability. Overlapping area represents the amount of predictability between Home Depot time series from 3rd of June 2024 to 1st of September 2024 and 1st of September 2024 to 30th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Home Depot price movement. The serial correlation of 0.71 indicates that around 71.0% of current Home Depot price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.71 | |
| Spearman Rank Test | 0.69 | |
| Residual Average | 0.0 | |
| Price Variance | 188 K |
Home Depot lagged returns against current returns
Autocorrelation, which is Home Depot stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Home Depot's stock expected returns. We can calculate the autocorrelation of Home Depot returns to help us make a trade decision. For example, suppose you find that Home Depot has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Home Depot regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Home Depot stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Home Depot stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Home Depot stock over time.
Current vs Lagged Prices |
| Timeline |
Home Depot Lagged Returns
When evaluating Home Depot's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Home Depot stock have on its future price. Home Depot autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Home Depot autocorrelation shows the relationship between Home Depot stock current value and its past values and can show if there is a momentum factor associated with investing in The Home Depot.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Home Stock Analysis
When running Home Depot's price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.