This module allows you to analyze existing cross correlation between Chevron Corporation and The Home Depot. You can compare the effects of market volatilities on Chevron 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 Chevron with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Chevron and Home Depot.
|Horizon||30 Days Login to change|
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.
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.
Chevron and Home Depot Volatility Contrast
Predicted Return Density
Chevron Corp. vs. The Home Depot Inc
Considering 30-days investment horizon, Chevron Corporation is expected to under-perform the Home Depot. In addition to that, Chevron is 1.26 times more volatile than The Home Depot. It trades about -0.07 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.02 per unit of volatility. If you would invest 18,968 in The Home Depot on April 24, 2019 and sell it today you would earn a total of 103.00 from holding The Home Depot or generate 0.54% return on investment over 30 days.
Pair Corralation between Chevron and Home Depot
|Time Period||2 Months [change]|
Diversification Opportunities for Chevron and Home Depot
Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. 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 Chevron 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 Chevron Corporation 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 Chevron i.e. Chevron and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.