Correlation Analysis Between Apple and Home Depot

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

Apple  
00

Risk-Adjusted Performance

Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting 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 The Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Apple and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to under-perform the Home Depot. In addition to that, Apple is 1.72 times more volatile than The Home Depot. It trades about -0.06 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.0 per unit of volatility. If you would invest  20,655  in The Home Depot on May 17, 2019 and sell it today you would lose (78.00)  from holding The Home Depot or give up 0.38% of portfolio value over 30 days.

Pair Corralation between Apple and Home Depot

0.75
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and Home Depot

Apple Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple 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 Apple i.e. Apple and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. macroaxis watchlist is based on self-learning algorithm to remember stocks you like.


 
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