Correlation Analysis Between Home Depot and American Airlines

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

The Home Depot Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to generate 0.51 times more return on investment than American Airlines. However, The Home Depot is 1.96 times less risky than American Airlines. It trades about 0.27 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.17 per unit of risk. If you would invest  18,979  in The Home Depot on May 20, 2018 and sell it today you would earn a total of  920.00  from holding The Home Depot or generate 4.85% return on investment over 30 days.

Pair Corralation between Home Depot and American Airlines

-0.38
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group 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 The Home Depot are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines Group has no effect on the direction of Home Depot i.e. Home Depot and American Airlines go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
The Home Depot  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
American Airlines Group  
0 

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1168.06

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