Correlation Analysis Between Fossil and Home Depot

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

Fossil Group Inc  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Fossil Group is expected to generate 3.86 times more return on investment than Home Depot. However, Fossil is 3.86 times more volatile than The Home Depot. It trades about 0.64 of its potential returns per unit of risk. The Home Depot is currently generating about 0.4 per unit of risk. If you would invest  2,103  in Fossil Group on May 26, 2018 and sell it today you would earn a total of  997.00  from holding Fossil Group or generate 47.41% return on investment over 30 days.

Pair Corralation between Fossil and Home Depot

0.94
Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group Inc 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 Fossil 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 Fossil Group 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 Fossil i.e. Fossil and Home Depot go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Fossil Group  
42 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Fossil Group are ranked lower than 42 (%) of all global equities and portfolios over the last 30 days.
The Home Depot  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1118.92

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