Correlation Analysis Between Home Depot and Citigroup

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

Home Depot  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Home Depot may actually be approaching a critical reversion point that can send shares even higher in November 2019.
Citigroup  
00

Risk-Adjusted Performance

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

Home Depot and Citigroup Volatility Contrast

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  Citigroup Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.68 times more return on investment than Citigroup. However, Home Depot is 1.47 times less risky than Citigroup. It trades about 0.13 of its potential returns per unit of risk. Citigroup is currently generating about 0.0 per unit of risk. If you would invest  21,342  in Home Depot on September 22, 2019 and sell it today you would earn a total of  2,328  from holding Home Depot or generate 10.91% return on investment over 30 days.

Pair Corralation between Home Depot and Citigroup

0.45
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Citigroup

Home Depot Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Home Depot i.e. Home Depot and Citigroup go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.


 
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