Correlation Analysis Between Citigroup and Home Depot

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

Citigroup  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2020.
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.

Citigroup and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Citigroup Inc  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Citigroup is expected to generate 1.16 times more return on investment than Home Depot. However, Citigroup is 1.16 times more volatile than Home Depot. It trades about 0.12 of its potential returns per unit of risk. Home Depot is currently generating about -0.11 per unit of risk. If you would invest  6,879  in Citigroup on November 8, 2019 and sell it today you would earn a total of  702.00  from holding Citigroup or generate 10.2% return on investment over 30 days.

Pair Corralation between Citigroup and Home Depot

-0.18
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Citigroup and Home Depot

Citigroup Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
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