Correlation Between Flgger Group and Home Depot
Can any of the company-specific risk be diversified away by investing in both Flgger Group and Home Depot at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Flgger Group and Home Depot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flgger Group AS and Home Depot, you can compare the effects of market volatilities on Flgger Group 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 Flgger Group with a short position of Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flgger Group and Home Depot.
Diversification Opportunities for Flgger Group and Home Depot
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flgger and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flgger Group AS and Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Flgger Group 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 Flgger Group AS 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 Flgger Group i.e., Flgger Group and Home Depot go up and down completely randomly.
Pair Corralation between Flgger Group and Home Depot
If you would invest 29,111 in Home Depot on December 30, 2023 and sell it today you would earn a total of 9,249 from holding Home Depot or generate 31.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Flgger Group AS vs. Home Depot
Performance |
Timeline |
Flgger Group AS |
Risk-Adjusted Performance
0 of 100
Low | High |
Insignificant
Home Depot |
Flgger Group and Home Depot Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flgger Group and Home Depot
The main advantage of trading using opposite Flgger Group and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flgger Group position performs unexpectedly, Home Depot can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Home Depot will offset losses from the drop in Home Depot's long position.Flgger Group vs. Vestjysk Bank AS | Flgger Group vs. PARKEN Sport Entertainment | Flgger Group vs. FOM Technologies AS | Flgger Group vs. Fynske Bank AS |
Home Depot vs. Procter Gamble | Home Depot vs. McDonalds | Home Depot vs. Dupont De Nemours | Home Depot vs. Verizon Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |