Correlation Analysis Between Best Buy and Home Depot

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

Comparative Performance

Best Buy  
0

Risk-Adjusted Performance

Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions.
Home Depot  
5

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.

Best Buy and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to under-perform the Home Depot. In addition to that, Best Buy is 1.45 times more volatile than The Home Depot. It trades about -0.05 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.08 per unit of volatility. If you would invest  16,905  in The Home Depot on December 20, 2018 and sell it today you would earn a total of  1,053  from holding The Home Depot or generate 6.23% return on investment over 30 days.

Pair Corralation between Best Buy and Home Depot

0.64
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and Home Depot

Best Buy Co Inc diversification synergy

Poor diversification

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

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See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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