This module allows you to analyze existing cross correlation between The Home Depot Inc and Citigroup Inc. You can compare the effects of market volatilities on Home Depot and Citigroup 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 Citigroup. See also your portfolio center
. Please also check ongoing floating volatility patterns of Home Depot
The Home Depot Inc vs Citigroup Inc
Allowing for the 30-days total investment horizon, The Home Depot Inc is expected to generate 0.74 times more return on investment than Citigroup. However, The Home Depot Inc is 1.36 times less risky than Citigroup. It trades about 0.34 of its potential returns per unit of risk. Citigroup Inc is currently generating about 0.24 per unit of risk. If you would invest 15,139 in The Home Depot Inc on August 26, 2017 and sell it today you would earn a total of 858.00 from holding The Home Depot Inc or generate 5.67% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup Inc has no effect on the direction of Home Depot i.e. Home Depot and Citigroup 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 23 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.