This module allows you to analyze existing cross correlation between Citigroup and The Home Depot. You can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Home Depot.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in June 2019.
Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Home Depot is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Citigroup and Home Depot Volatility Contrast
Predicted Return Density
Citigroup Inc vs. The Home Depot Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 1.5 times more return on investment than Home Depot. However, Citigroup is 1.5 times more volatile than The Home Depot. It trades about 0.1 of its potential returns per unit of risk. The Home Depot is currently generating about 0.02 per unit of risk. If you would invest 6,033 in Citigroup on April 24, 2019 and sell it today you would earn a total of 386.00 from holding Citigroup or generate 6.4% return on investment over 30 days.
Pair Corralation between Citigroup and Home Depot
|Time Period||2 Months [change]|
Diversification Opportunities for Citigroup and Home Depot
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.