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  
17

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Home Depot  
21

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.

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 is expected to generate 1.05 times less return on investment than Home Depot. In addition to that, Chevron is 1.16 times more volatile than The Home Depot. It trades about 0.27 of its total potential returns per unit of risk. The Home Depot is currently generating about 0.32 per unit of volatility. If you would invest  15,580  in The Home Depot on January 24, 2019 and sell it today you would earn a total of  3,659  from holding The Home Depot or generate 23.49% return on investment over 30 days.

Pair Corralation between Chevron and Home Depot

0.97
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and Home Depot

Chevron Corp. diversification synergy

Almost no 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.

Thematic Opportunities

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