Correlation Analysis Between Chevron and Home Depot

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

Comparative Performance

Chevron  
0

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Home Depot  
0

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.

Chevron and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  The Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 0.96 times more return on investment than Home Depot. However, Chevron Corporation is 1.05 times less risky than Home Depot. It trades about -0.04 of its potential returns per unit of risk. The Home Depot is currently generating about -0.15 per unit of risk. If you would invest  11,751  in Chevron Corporation on November 15, 2018 and sell it today you would lose (368.00)  from holding Chevron Corporation or give up 3.13% of portfolio value over 30 days.

Pair Corralation between Chevron and Home Depot

0.34
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and Home Depot

Chevron Corp. diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron 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 Chevron 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 Chevron 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 Chevron i.e. Chevron and Home Depot go up and down completely randomly.

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