Correlation Analysis Between Apple and Home Depot

This module allows you to analyze existing cross correlation between Apple and Home Depot. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Home Depot.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Apple  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
Home Depot  
00

Risk-Adjusted Performance

Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Apple and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Apple  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 1.07 times more return on investment than Home Depot. However, Apple is 1.07 times more volatile than Home Depot. It trades about 0.29 of its potential returns per unit of risk. Home Depot is currently generating about -0.1 per unit of risk. If you would invest  21,990  in Apple on November 14, 2019 and sell it today you would earn a total of  5,525  from holding Apple or generate 25.13% return on investment over 30 days.

Pair Corralation between Apple and Home Depot

-0.38
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for Apple and Home Depot

Apple diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Apple 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 Apple 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 Apple i.e. Apple and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.


 
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