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
Symbolsvs
Check Efficiency

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 may actually be approaching a critical reversion point that can send shares even higher in November 2019.
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 latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company 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 0.42 times more return on investment than Alcoa. However, Home Depot is 2.4 times less risky than Alcoa. It trades about 0.15 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.05 per unit of risk. If you would invest  21,000  in Home Depot on September 18, 2019 and sell it today you would earn a total of  2,677  from holding Home Depot or generate 12.75% return on investment over 30 days.

Pair Corralation between Home Depot and Alcoa

0.08
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Alcoa

Home Depot Inc diversification synergy

Significant 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of macroaxis ideas.


 
Search macroaxis.com