Correlation Analysis Between Home Depot and Chevron

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

Home Depot  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 8 (%) 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.
Chevron  
00

Risk-Adjusted Performance

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

Home Depot and Chevron Volatility Contrast

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  Chevron Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.04 times more return on investment than Chevron. However, Home Depot is 1.04 times more volatile than Chevron Corporation. It trades about 0.12 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.06 per unit of risk. If you would invest  21,431  in Home Depot on September 15, 2019 and sell it today you would earn a total of  2,131  from holding Home Depot or generate 9.94% return on investment over 30 days.

Pair Corralation between Home Depot and Chevron

-0.1
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Chevron

Home Depot Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Home Depot i.e. Home Depot and Chevron go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.


 
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