This module allows you to analyze existing cross correlation between Apple and The Home Depot. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Home Depot. See also
your portfolio center. Please also check ongoing floating volatility patterns of
Apple and
Home Depot.
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Horizon
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30 Days
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to change
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Comparative Performance
Risk-Adjusted Performance
Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions.
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.
Apple and Home Depot Volatility Contrast
Apple Inc vs. The Home Depot Inc
Pair Volatility
Given the investment horizon of 30 days, Apple is expected to generate 1.11 times less return on investment than Home Depot. In addition to that, Apple is 1.65 times more volatile than The Home Depot. It trades about 0.17 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.31 per unit of volatility. If you would invest 15,814 in The Home Depot on January 21, 2019 and sell it today you would earn a total of 3,341 from holding The Home Depot or generate 21.13% return on investment over 30 days.
Pair Corralation between Apple and Home Depot
0.45
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification Opportunities for Apple and Home Depot
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and The Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Apple 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 Apple 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 Apple i.e. Apple and Home Depot go up and down completely randomly.
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