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
Compare Efficiency

Comparative Performance

Home Depot  

Risk-Adjusted Performance

Over the last 30 days The Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions.

Risk-Adjusted Performance

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

Home Depot and Chevron Volatility Contrast

 Predicted Return Density 

The Home Depot Inc  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to under-perform the Chevron. In addition to that, Home Depot is 1.07 times more volatile than Chevron Corporation. It trades about -0.12 of its total potential returns per unit of risk. Chevron Corporation is currently generating about 0.0 per unit of volatility. If you would invest  11,694  in Chevron Corporation on November 14, 2018 and sell it today you would lose (100.00)  from holding Chevron Corporation or give up 0.86% of portfolio value over 30 days.

Pair Corralation between Home Depot and Chevron

Time Period2 Months [change]
StrengthVery Weak
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.

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See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.