Correlation Analysis Between Home Depot and International Business

This module allows you to analyze existing cross correlation between Home Depot and International Business Machines. 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  
00

Risk-Adjusted Performance

Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady 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 

Home Depot Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to under-perform the International Business. In addition to that, Home Depot is 1.02 times more volatile than International Business Machines. It trades about -0.11 of its total potential returns per unit of risk. International Business Machines is currently generating about -0.1 per unit of volatility. If you would invest  14,362  in International Business Machines on November 11, 2019 and sell it today you would lose (971.00)  from holding International Business Machines or give up 6.76% of portfolio value over 30 days.

Pair Corralation between Home Depot and International Business

0.27
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and International Business

Home Depot Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding 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 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 Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.


 
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