Correlation Analysis Between Home Depot and Chevron

This module allows you to analyze existing cross correlation between The 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  
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.
Chevron  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. Inspite fairly unsteady basic indicators, Chevron may actually be approaching a critical reversion point that can send shares even higher in July 2019.

Home Depot and Chevron Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  Chevron Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 6.59 times less return on investment than Chevron. But when comparing it to its historical volatility, The Home Depot is 1.03 times less risky than Chevron. It trades about 0.03 of its potential returns per unit of risk. Chevron Corporation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  11,596  in Chevron Corporation on May 26, 2019 and sell it today you would earn a total of  895.00  from holding Chevron Corporation or generate 7.72% return on investment over 30 days.

Pair Corralation between Home Depot and Chevron

0.36
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Chevron

The Home Depot Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding The 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 The 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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