Correlation Analysis Between Home Depot and Alcoa

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

Home Depot  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, Home Depot exhibited solid returns over the last few months and may actually be approaching a breakup point.
Alcoa  
00

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The prevalent stock price disturbance, may contribute to short term losses for the investors.

Home Depot and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.4 times more return on investment than Alcoa. However, Home Depot is 2.48 times less risky than Alcoa. It trades about 0.16 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.02 per unit of risk. If you would invest  21,000  in Home Depot on September 20, 2019 and sell it today you would earn a total of  2,793  from holding Home Depot or generate 13.3% return on investment over 30 days.

Pair Corralation between Home Depot and Alcoa

0.11
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Alcoa

Home Depot Inc diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa 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 Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Home Depot i.e. Home Depot and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Reporting module to create custom reports across your portfolios and generate quick suggestion pitch.


 
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