Correlation Analysis Between Home Depot and Apple

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

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.
Apple  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.

Home Depot and Apple Volatility Contrast

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  Apple

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, Home Depot is 1.16 times less risky than Apple. The stock trades about -0.11 of its potential returns per unit of risk. The Apple is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  21,417  in Apple on November 7, 2019 and sell it today you would earn a total of  5,654  from holding Apple or generate 26.4% return on investment over 30 days.

Pair Corralation between Home Depot and Apple

-0.24
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Apple

Home Depot Inc diversification synergy

Very good diversification

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


 
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