Correlation Analysis Between Macys and Home Depot

This module allows you to analyze existing cross correlation between Macys and The Home Depot. You can compare the effects of market volatilities on Macys 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 Macys with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Macys and Home Depot.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Macys Inc  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Macys is expected to generate 3.22 times more return on investment than Home Depot. However, Macys is 3.22 times more volatile than The Home Depot. It trades about 0.22 of its potential returns per unit of risk. The Home Depot is currently generating about 0.34 per unit of risk. If you would invest  3,461  in Macys on May 20, 2018 and sell it today you would earn a total of  412.00  from holding Macys or generate 11.9% return on investment over 30 days.

Pair Corralation between Macys and Home Depot

0.82
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and The Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on The Home Depot and Macys 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 Macys 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 The Home Depot has no effect on the direction of Macys i.e. Macys and Home Depot go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Macys  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Macys are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.
The Home Depot  
22 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1159.76

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.