Correlation Analysis Between Home Depot and NASDAQ UK

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

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.83 times more return on investment than NASDAQ UK. However, Home Depot is 1.83 times more volatile than NASDAQ UK. It trades about 0.09 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.22 per unit of risk. If you would invest  20,702  in Home Depot on July 27, 2019 and sell it today you would earn a total of  1,045  from holding Home Depot or generate 5.05% return on investment over 30 days.

Pair Corralation between Home Depot and NASDAQ UK

0.25
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Home Depot and NASDAQ UK

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 NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK 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 NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of Home Depot i.e. Home Depot and NASDAQ UK go up and down completely randomly.
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See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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