Correlation Analysis Between Home Depot and International Business

This module allows you to analyze existing cross correlation between The Home Depot and International Business Machines Corporation. You can compare the effects of market volatilities on Home Depot and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and International Business.
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.
International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.

Home Depot and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to generate 0.85 times more return on investment than International Business. However, The Home Depot is 1.18 times less risky than International Business. It trades about 0.02 of its potential returns per unit of risk. International Business Machines Corporation is currently generating about -0.1 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 International Business

0.56
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and International Business

The Home Depot Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Home Depot i.e. Home Depot and International Business go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.


 
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