Correlation Analysis Between Home Depot and Sprint

This module allows you to analyze existing cross correlation between The Home Depot and Sprint Corporation. You can compare the effects of market volatilities on Home Depot and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Sprint.
Horizon     30 Days    Login   to change
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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.
Sprint  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Sprint reported solid returns over the last few months and may actually be approaching a breakup point.

Home Depot and Sprint Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  Sprint Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 15.54 times less return on investment than Sprint. But when comparing it to its historical volatility, The Home Depot is 3.89 times less risky than Sprint. It trades about 0.02 of its potential returns per unit of risk. Sprint Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  629.00  in Sprint Corporation on April 24, 2019 and sell it today you would earn a total of  57.00  from holding Sprint Corporation or generate 9.06% return on investment over 30 days.

Pair Corralation between Home Depot and Sprint

-0.54
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Sprint

The Home Depot Inc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Home Depot i.e. Home Depot and Sprint go up and down completely randomly.
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