This module allows you to analyze existing cross correlation between Chevron Corporation and 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 latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, Home Depot exhibited solid returns over the last few months and may actually be approaching a breakup point.
Chevron and Home Depot Volatility Contrast
Predicted Return Density
Chevron Corp. vs. Home Depot Inc
Considering 30-days investment horizon, Chevron Corporation is expected to under-perform the Home Depot. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corporation is 1.03 times less risky than Home Depot. The stock trades about -0.09 of its potential returns per unit of risk. The Home Depot is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 21,000 in Home Depot on September 20, 2019 and sell it today you would earn a total of 2,793 from holding Home Depot or generate 13.3% return on investment over 30 days.
Pair Corralation between Chevron and Home Depot
|Time Period||3 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 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.