Correlation Analysis Between Home Depot and Best Buy

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

Comparative Performance

Home Depot  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Home Depot is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Best Buy  
00

Risk-Adjusted Performance

Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Home Depot and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to generate 0.67 times more return on investment than Best Buy. However, The Home Depot is 1.48 times less risky than Best Buy. It trades about 0.02 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.14 per unit of risk. If you would invest  18,968  in The Home Depot on April 24, 2019 and sell it today you would earn a total of  103.00  from holding The Home Depot or generate 0.54% return on investment over 30 days.

Pair Corralation between Home Depot and Best Buy

0.78
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Best Buy

The Home Depot Inc diversification synergy

Poor diversification

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

Best Buy Co

Pair trading matchups for Best Buy

See also your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.


 
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