This module allows you to analyze existing cross correlation between The Home Depot Inc and Apple Inc. You can compare the effects of market volatilities on Home Depot and Apple 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 Home Depot with a short position of Apple. See also your portfolio center
. Please also check ongoing floating volatility patterns of Home Depot
The Home Depot Inc vs Apple Inc
Allowing for the 30-days total investment horizon, Home Depot is expected to generate 3.18 times less return on investment than Apple. But when comparing it to its historical volatility, The Home Depot Inc is 1.52 times less risky than Apple. It trades about 0.15 of its potential returns per unit of risk. Apple Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 15,598 in Apple Inc on October 19, 2017 and sell it today you would earn a total of 1,417 from holding Apple Inc or generate 9.08% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Home Depot 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 The Home Depot Inc are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Home Depot i.e. Home Depot and Apple go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.