Home Depot Cdr Stock Market Value
| HD Stock | 27.55 0.30 1.08% |
| 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.
| 06/02/2024 |
| 11/29/2024 |
If you would invest 0.00 in HOME DEPOT on June 2, 2024 and sell it all today you would earn a total of 0.00 from holding HOME DEPOT CDR or generate 0.0% return on investment in HOME DEPOT over 180 days. HOME DEPOT is related to or competes with Berkshire Hathaway, JPMorgan Chase, Bank of America, Alphabet, Microsoft Corp, and Walmart. HOME DEPOT is entity of Canada. It is traded as Stock on NEO exchange. 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 HOME DEPOT CDR upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.18 | |||
| Information Ratio | 0.0964 | |||
| Maximum Drawdown | 4.98 | |||
| Value At Risk | (1.61) | |||
| Potential Upside | 2.1 |
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 | 0.1589 | |||
| Jensen Alpha | 0.1809 | |||
| Total Risk Alpha | 0.0515 | |||
| Sortino Ratio | 0.0966 | |||
| Treynor Ratio | 0.5509 |
HOME DEPOT CDR Backtested Returns
HOME DEPOT appears to be very steady, given 3 months investment horizon. HOME DEPOT CDR holds Efficiency (Sharpe) Ratio of 0.22, which attests that the entity had a 0.22% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for HOME DEPOT CDR, which you can use to evaluate the volatility of the firm. Please utilize HOME DEPOT's Market Risk Adjusted Performance of 0.5609, risk adjusted performance of 0.1589, and Semi Deviation of 0.9327 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 17. The company retains a Market Volatility (i.e., Beta) of 0.42, which attests to possible diversification benefits within a given portfolio. 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 maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside , to make a quick decision on whether HOME DEPOT's current trending patterns will revert.
Auto-correlation | 0.62 |
Good predictability
HOME DEPOT CDR has good predictability. Overlapping area represents the amount of predictability between HOME DEPOT time series from 2nd of June 2024 to 31st of August 2024 and 31st of August 2024 to 29th 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 CDR price movement. The serial correlation of 0.62 indicates that roughly 62.0% of current HOME DEPOT price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.62 | |
| Spearman Rank Test | 0.44 | |
| Residual Average | 0.0 | |
| Price Variance | 1.19 |
HOME DEPOT CDR 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 HOME DEPOT CDR.
Regressed Prices |
| Timeline |
Pair Trading with HOME DEPOT
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HOME DEPOT position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with HOME Stock
Moving against HOME Stock
The ability to find closely correlated positions to HOME DEPOT could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HOME DEPOT when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HOME DEPOT - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HOME DEPOT CDR to buy it.
The correlation of HOME DEPOT is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HOME DEPOT moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HOME DEPOT CDR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HOME DEPOT can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in HOME Stock
HOME DEPOT financial ratios help investors to determine whether HOME Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in HOME with respect to the benefits of owning HOME DEPOT security.