Correlation Analysis Between Home Depot and All Ords

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

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  All Ords

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.41 times more return on investment than All Ords. However, Home Depot is 1.41 times more volatile than All Ords. It trades about 0.1 of its potential returns per unit of risk. All Ords is currently generating about -0.05 per unit of risk. If you would invest  20,550  in Home Depot on July 24, 2019 and sell it today you would earn a total of  1,197  from holding Home Depot or generate 5.82% return on investment over 30 days.

Pair Corralation between Home Depot and All Ords

0.25
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy81.82%
ValuesDaily Returns

Diversification Opportunities for Home Depot and All Ords

Home Depot Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and Home Depot 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 Home Depot are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Home Depot i.e. Home Depot and All Ords go up and down completely randomly.
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See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.


 
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