This module allows you to analyze existing cross correlation between DOW and The Home Depot. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Home Depot.
|Time Horizon||30 Days Login to change|
DOW vs. The Home Depot Inc
Given the investment horizon of 30 days, DOW is expected to generate 3.25 times less return on investment than Home Depot. But when comparing it to its historical volatility, DOW is 1.98 times less risky than Home Depot. It trades about 0.14 of its potential returns per unit of risk. The Home Depot is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 17,766 in The Home Depot on April 21, 2018 and sell it today you would earn a total of 1,200 from holding The Home Depot or generate 6.75% return on investment over 30 days.