This module allows you to analyze existing cross correlation between Home Depot and Taiwan Wtd. You can compare the effects of market volatilities on Home Depot and Taiwan Wtd 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 Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
Home Depot Inc vs. Taiwan Wtd
Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.88 times more return on investment than Taiwan Wtd. However, Home Depot is 1.88 times more volatile than Taiwan Wtd. It trades about 0.07 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.08 per unit of risk. If you would invest 20,642 in Home Depot on July 26, 2019 and sell it today you would earn a total of 750.00 from holding Home Depot or generate 3.63% return on investment over 30 days.
Pair Corralation between Home Depot and Taiwan Wtd
|Time Period||2 Months [change]|
Diversification Opportunities for Home Depot and Taiwan Wtd
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd 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 Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of Home Depot i.e. Home Depot and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.