This module allows you to analyze existing cross correlation between The Home Depot Inc and Macys Inc. You can compare the effects of market volatilities on Home Depot and Macys 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 Macys. See also your portfolio center
. Please also check ongoing floating volatility patterns of Home Depot
The Home Depot Inc vs Macys Inc
Allowing for the 30-days total investment horizon, The Home Depot Inc is expected to under-perform the Macys. But the stock apears to be less risky and, when comparing its historical volatility, The Home Depot Inc is 1.75 times less risky than Macys. The stock trades about -0.16 of its potential returns per unit of risk. The Macys Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,559 in Macys Inc on February 21, 2018 and sell it today you would earn a total of 268.00 from holding Macys Inc or generate 10.47% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Home Depot i.e. Home Depot and Macys go up and down completely randomly.
Over the last 30 days The Home Depot Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.