This module allows you to analyze existing cross correlation between Sprint Corporation and The Home Depot. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and Home Depot.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 9 (%) 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.
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 and Home Depot Volatility Contrast
Predicted Return Density
Sprint Corp. vs. The Home Depot Inc
Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 3.78 times more return on investment than Home Depot. However, Sprint is 3.78 times more volatile than The Home Depot. It trades about 0.14 of its potential returns per unit of risk. The Home Depot is currently generating about 0.03 per unit of risk. If you would invest 554.00 in Sprint Corporation on May 26, 2019 and sell it today you would earn a total of 130.00 from holding Sprint Corporation or generate 23.47% return on investment over 30 days.
Pair Corralation between Sprint and Home Depot
|Time Period||2 Months [change]|
Diversification Opportunities for Sprint and Home Depot
Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and The Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Sprint 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 Sprint Corporation 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 Sprint i.e. Sprint and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.