Correlation Analysis Between Apple and Home Depot |
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.
| Time Horizon | 30 Days Login to change |
| Symbols | vs |
Apple Inc vs. The Home Depot Inc
Pair Volatility
Given the investment horizon of 30 days, Apple is expected to generate 1.65 times more return on investment than Home Depot. However, Apple is 1.65 times more volatile than The Home Depot. It trades about 0.13 of its potential returns per unit of risk. The Home Depot is currently generating about 0.07 per unit of risk. If you would invest 18,569 in Apple on June 19, 2018 and sell it today you would earn a total of 471.00 from holding Apple or generate 2.54% return on investment over 30 days.
Pair Corralation between Apple and Home Depot
0.5
| Time Period | 1 Month [change] |
| Direction | Positive |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification
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 The 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 The Home Depot has no effect on the direction of Apple i.e. Apple and Home Depot go up and down completely randomly.
Comparative Volatility
| Apple |
8 Risk-Adjusted Performance
Risk-Adjusted PerformanceCompared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Apple
Pair trading matchups for Apple
| The Home Depot |
4 Risk-Adjusted Performance
Risk-Adjusted PerformanceCompared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.
The Home Depot
Pair trading matchups for Home Depot
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See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.