Correlation Analysis Between Ford Motor and Home Depot

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

Ford Motor  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In spite of rather uncertain fundamental drivers, Ford Motor may actually be approaching a critical reversion point that can send shares even higher in February 2020.
Home Depot  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Home Depot is not utilizing all of its potentials. The prevalent stock price tumult, may contribute to shorter-term losses for the shareholders.

Ford Motor and Home Depot Volatility Contrast

 Predicted Return Density 
    
  Returns 

Ford Motor Company  vs.  Home Depot Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.0 times more return on investment than Home Depot. However, Ford Motor Company is 1.0 times less risky than Home Depot. It trades about 0.1 of its potential returns per unit of risk. Home Depot is currently generating about 0.02 per unit of risk. If you would invest  860.00  in Ford Motor Company on December 23, 2019 and sell it today you would earn a total of  60.00  from holding Ford Motor Company or generate 6.98% return on investment over 30 days.

Pair Corralation between Ford Motor and Home Depot

-0.44
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Home Depot

Ford Motor Company diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Ford Motor 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 Ford Motor Company 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 Ford Motor i.e. Ford Motor and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.