This module allows you to analyze existing cross correlation between Citigroup and 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|
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Citigroup is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short term losses for the investors.
Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Home Depot may actually be approaching a critical reversion point that can send shares even higher in November 2019.
Citigroup and Home Depot Volatility Contrast
Predicted Return Density
Citigroup Inc vs. Home Depot Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 52.33 times less return on investment than Home Depot. In addition to that, Citigroup is 1.47 times more volatile than Home Depot. It trades about 0.0 of its total potential returns per unit of risk. Home Depot is currently generating about 0.13 per unit of volatility. If you would invest 21,342 in Home Depot on September 22, 2019 and sell it today you would earn a total of 2,328 from holding Home Depot or generate 10.91% return on investment over 30 days.
Pair Corralation between Citigroup and Home Depot
|Time Period||3 Months [change]|
Diversification Opportunities for Citigroup and Home Depot
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and 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 Portfolio Reporting module to create custom reports across your portfolios and generate quick suggestion pitch.