Correlation Analysis Between International Business and Home Depot

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

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  
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 and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines is expected to generate 0.96 times more return on investment than Home Depot. However, International Business Machines is 1.04 times less risky than Home Depot. It trades about -0.1 of its potential returns per unit of risk. Home Depot is currently generating about -0.13 per unit of risk. If you would invest  14,367  in International Business Machines on November 12, 2019 and sell it today you would lose (991.00)  from holding International Business Machines or give up 6.9% of portfolio value over 30 days.

Pair Corralation between International Business and Home Depot

0.29
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Home Depot

International Business Machine diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and International Business 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 International Business Machines are associated (or correlated) with Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of International Business i.e. International Business and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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