This module allows you to analyze existing cross correlation between International Business Machines and Home Depot. You can compare the effects of market volatilities on International Business and Home Depot 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 International Business with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and Home Depot.
|Horizon||30 Days Login to change|
Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Home Depot is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
International Business and Home Depot Volatility Contrast
Predicted Return Density
International Business Machine vs. Home Depot Inc
Considering 30-days investment horizon, International Business Machines is expected to under-perform the Home Depot. In addition to that, International Business is 1.2 times more volatile than Home Depot. It trades about -0.03 of its total potential returns per unit of risk. Home Depot is currently generating about -0.04 per unit of volatility. If you would invest 20,794 in Home Depot on July 19, 2019 and sell it today you would lose (429.00) from holding Home Depot or give up 2.06% of portfolio value over 30 days.
Pair Corralation between International Business and Home Depot
|Time Period||2 Months [change]|
Diversification Opportunities for International Business and Home Depot
Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and International Business 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 International Business Machines are associated (or correlated) with Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of International Business i.e. International Business and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.