Correlation Analysis Between Home Depot and Alcoa

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

The Home Depot Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to under-perform the Alcoa. But the stock apears to be less risky and, when comparing its historical volatility, The Home Depot is 1.96 times less risky than Alcoa. The stock trades about -0.5 of its potential returns per unit of risk. The Alcoa Corporation is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  4,196  in Alcoa Corporation on September 23, 2018 and sell it today you would lose (421.00)  from holding Alcoa Corporation or give up 10.03% of portfolio value over 30 days.

Pair Corralation between Home Depot and Alcoa

0.55
Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy85.19%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Home Depot 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 The Home Depot are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Home Depot i.e. Home Depot and Alcoa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
The 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.
Alcoa  
0 

Risk-Adjusted Performance

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

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1103.69

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