Correlation Analysis Between Target and Home Depot

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

Target Corp.  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Target Corporation is expected to generate 1.92 times more return on investment than Home Depot. However, Target is 1.92 times more volatile than The Home Depot. It trades about 0.31 of its potential returns per unit of risk. The Home Depot is currently generating about -0.35 per unit of risk. If you would invest  7,727  in Target Corporation on July 17, 2018 and sell it today you would earn a total of  541.00  from holding Target Corporation or generate 7.0% return on investment over 30 days.

Pair Corralation between Target and Home Depot

-0.73
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Target 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 Target 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 Target 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 Target i.e. Target and Home Depot go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Target  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.
The Home Depot  
0 

Risk-Adjusted Performance

Over the last 30 days The Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1235.01

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