Macroaxis considers Home Depot not too risky given 1 month investment horizon. The Home Depot holds Efficiency (Sharpe) Ratio of 0.4473 which attests that The Home Depot had 0.4473% of return per unit of risk over the last 1 month. Our philosophy towards determining volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty technical indicators for The Home Depot which you can use to evaluate future volatility of the corporation. Please utilize Home Depot Market Risk Adjusted Performance of 0.3742, Risk Adjusted Performance of 0.2357 and Coefficient Of Variation of 205.73 to validate if our risk estimates are consistent with your expectations.
|Investment Horizon||30 Days Login to change|
Home Depot Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Home Depot will likely underperform.One Month Beta |Analyze The Home Depot Demand TrendCheck current 30 days Home Depot correlation with market (DOW)|
β = 1.2147
The Home Depot Technical Analysis
Projected Return Density Against MarketAllowing for the 30-days total investment horizon, the stock has beta coefficient of 1.2147 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Home Depot will likely underperform. Moreover, The Home Depot Inc has an alpha of 0.1346 implying that it can potentially generate 0.1346% excess return over DOW after adjusting for the inherited market risk (beta).
Allowing for the 30-days total investment horizon, the coefficient of variation of Home Depot is 223.55. The daily returns are destributed with a variance of 0.92 and standard deviation of 0.96. The mean deviation of The Home Depot Inc is currently at 0.77. For similar time horizon, the selected benchmark (DOW) has volatility of 0.47