Correlation Analysis Between Chevron and Home Depot

This module allows you to analyze existing cross correlation between Chevron Corporation and Home Depot. 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.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Chevron  
00

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.
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.

Chevron and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 1.21 times more return on investment than Home Depot. However, Chevron is 1.21 times more volatile than Home Depot. It trades about -0.01 of its potential returns per unit of risk. Home Depot is currently generating about -0.11 per unit of risk. If you would invest  11,939  in Chevron Corporation on November 8, 2019 and sell it today you would lose (138.00)  from holding Chevron Corporation or give up 1.16% of portfolio value over 30 days.

Pair Corralation between Chevron and Home Depot

0.11
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and Home Depot

Chevron Corp. diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 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 Home Depot has no effect on the direction of Chevron i.e. Chevron and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.


 
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