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Correlation Between Home Depot and Hyatt Hotels

Analyzing existing cross correlation between Home Depot and Hyatt Hotels Corporation. You can compare the effects of market volatilities on Home Depot and Hyatt Hotels 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 Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Hyatt Hotels.

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Diversification Opportunities for Home Depot and Hyatt Hotels

Home Depot Inc diversification synergy
0.5
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Very weak diversification

The 3 months correlation between Home Depot and Hyatt is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Hyatt Hotels Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels 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 Hyatt Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyatt Hotels has no effect on the direction of Home Depot i.e. Home Depot and Hyatt Hotels go up and down completely randomly.

Pair Corralation between Home Depot and Hyatt Hotels

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.62 times more return on investment than Hyatt Hotels. However, Home Depot is 1.61 times less risky than Hyatt Hotels. It trades about 0.13 of its potential returns per unit of risk. Hyatt Hotels Corporation is currently generating about 0.07 per unit of risk. If you would invest  22,300  in Home Depot on January 26, 2020 and sell it today you would earn a total of  1,670  from holding Home Depot or generate 7.49% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

Home Depot Inc  vs.  Hyatt Hotels Corp.

 Performance (%) 
    
  Timeline 
Home Depot 
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, Home Depot may actually be approaching a critical reversion point that can send shares even higher in March 2020.
Hyatt Hotels 
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hyatt Hotels Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite nearly fragile fundamental indicators, Hyatt Hotels may actually be approaching a critical reversion point that can send shares even higher in March 2020.

Home Depot and Hyatt Hotels Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.