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
Compare Efficiency

Comparative Performance

Apple  
10

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.
Home Depot  
19

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.

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 generate 1.14 times less return on investment than Home Depot. In addition to that, Apple is 1.69 times more volatile than The Home Depot. It trades about 0.15 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.29 per unit of volatility. If you would invest  15,814  in The Home Depot on January 23, 2019 and sell it today you would earn a total of  3,430  from holding The Home Depot or generate 21.69% return on investment over 30 days.

Pair Corralation between Apple and Home Depot

0.77
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.

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