Correlation Analysis Between Alphabet and Home Depot

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

Alphabet  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Alphabet may actually be approaching a critical reversion point that can send shares even higher in January 2020.
Home Depot  
00

Risk-Adjusted Performance

Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Alphabet and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Alphabet Inc  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Alphabet is expected to generate 0.89 times more return on investment than Home Depot. However, Alphabet is 1.12 times less risky than Home Depot. It trades about 0.16 of its potential returns per unit of risk. Home Depot is currently generating about -0.1 per unit of risk. If you would invest  122,017  in Alphabet on November 10, 2019 and sell it today you would earn a total of  12,449  from holding Alphabet or generate 10.2% return on investment over 30 days.

Pair Corralation between Alphabet and Home Depot

-0.35
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alphabet and Home Depot

Alphabet Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Alphabet 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 Alphabet 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 Alphabet i.e. Alphabet and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. drill down to check world indexes.


 
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