Correlation Analysis Between Sprint and Home Depot

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

Sprint  
00

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2020. The latest agitation may also be a sign of long running up-swing for the enterprise management.
Home Depot  
00

Risk-Adjusted Performance

Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Sprint and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Sprint Corp.  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to under-perform the Home Depot. In addition to that, Sprint is 1.5 times more volatile than Home Depot. It trades about -0.2 of its total potential returns per unit of risk. Home Depot is currently generating about -0.11 per unit of volatility. If you would invest  23,287  in Home Depot on November 7, 2019 and sell it today you would lose (1,859)  from holding Home Depot or give up 7.98% of portfolio value over 30 days.

Pair Corralation between Sprint and Home Depot

0.54
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and Home Depot

Sprint Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Sprint 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 Sprint 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 Home Depot has no effect on the direction of Sprint i.e. Sprint and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
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