This module allows you to analyze existing cross correlation between Rite Aid Corporation and The Home Depot. You can compare the effects of market volatilities on Rite Aid 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 Rite Aid with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Rite Aid and Home Depot.
Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Home Depot. In addition to that, Rite Aid is 6.14 times more volatile than The Home Depot. It trades about -0.07 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.13 per unit of volatility. If you would invest 19,908 in The Home Depot on June 20, 2018 and sell it today you would earn a total of 337.00 from holding The Home Depot or generate 1.69% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid Corp. 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 Rite Aid 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 Rite Aid Corporation 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 Rite Aid i.e. Rite Aid and Home Depot go up and down completely randomly.
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.