Correlation Analysis Between Ford Motor and Home Depot

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

Comparative Performance

Ford Motor  
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The prevalent stock price tumult, may contribute to shorter-term losses for the shareholders.
Home Depot  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In spite of rather conflicting fundamental drivers, Home Depot may actually be approaching a critical reversion point that can send shares even higher in October 2019.

Ford Motor and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the Home Depot. In addition to that, Ford Motor is 1.21 times more volatile than Home Depot. It trades about -0.06 of its total potential returns per unit of risk. Home Depot is currently generating about 0.1 per unit of volatility. If you would invest  20,426  in Home Depot on August 22, 2019 and sell it today you would earn a total of  1,696  from holding Home Depot or generate 8.3% return on investment over 30 days.

Pair Corralation between Ford Motor and Home Depot

-0.25
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Home Depot

Ford Motor Company diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Ford Motor 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 Ford Motor Company 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 Ford Motor i.e. Ford Motor and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
Search macroaxis.com