Correlation Analysis Between Home Depot and NQTH

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

 Predicted Return Density 

Home Depot Inc  vs.  NQTH

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.73 times more return on investment than NQTH. However, Home Depot is 1.73 times more volatile than NQTH. It trades about 0.1 of its potential returns per unit of risk. NQTH is currently generating about -0.19 per unit of risk. If you would invest  20,550  in Home Depot on July 22, 2019 and sell it today you would earn a total of  1,159  from holding Home Depot or generate 5.64% return on investment over 30 days.

Pair Corralation between Home Depot and NQTH

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Home Depot and NQTH

Home Depot Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Home Depot i.e. Home Depot and NQTH go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.