Correlation Analysis Between Home Depot and Macys

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

Home Depot  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather conflicting fundamental drivers, Home Depot may actually be approaching a critical reversion point that can send shares even higher in November 2019.

Risk-Adjusted Performance

Over the last 30 days Macys has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in November 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Home Depot and Macys Volatility Contrast

 Predicted Return Density 

Home Depot Inc  vs.  Macys Inc

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.42 times more return on investment than Macys. However, Home Depot is 2.37 times less risky than Macys. It trades about 0.14 of its potential returns per unit of risk. Macys is currently generating about -0.15 per unit of risk. If you would invest  21,176  in Home Depot on September 17, 2019 and sell it today you would earn a total of  2,414  from holding Home Depot or generate 11.4% return on investment over 30 days.

Pair Corralation between Home Depot and Macys

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Home Depot and Macys

Home Depot Inc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys has no effect on the direction of Home Depot i.e. Home Depot and Macys go up and down completely randomly.
See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.