Pair Correlation Between Chevron and Home Depot

This module allows you to analyze existing cross correlation between Chevron Corporation and The Home Depot Inc. You can compare the effects of market volatilities on Chevron 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 Chevron with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Chevron and Home Depot.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Chevron Corp.  vs   The Home Depot Inc.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron is expected to generate 4.54 times less return on investment than Home Depot. In addition to that, Chevron is 1.49 times more volatile than The Home Depot Inc. It trades about 0.02 of its total potential returns per unit of risk. The Home Depot Inc is currently generating about 0.13 per unit of volatility. If you would invest  15,189  in The Home Depot Inc on April 24, 2017 and sell it today you would earn a total of  294.00  from holding The Home Depot Inc or generate 1.94% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Chevron and Home Depot
0.16

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and The Home Depot Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on The Home Depot and Chevron 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 Chevron Corporation 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 The Home Depot has no effect on the direction of Chevron i.e. Chevron and Home Depot go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Chevron

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

The Home Depot

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.