Correlation Analysis Between Home Depot and American Airlines

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

Home Depot  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Home Depot is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
American Airlines  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

Home Depot and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 2.83 times less return on investment than American Airlines. But when comparing it to its historical volatility, The Home Depot is 1.71 times less risky than American Airlines. It trades about 0.03 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,057  in American Airlines Group on April 21, 2019 and sell it today you would earn a total of  99.00  from holding American Airlines Group or generate 3.24% return on investment over 30 days.

Pair Corralation between Home Depot and American Airlines

0.83
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and American Airlines

The Home Depot Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of Home Depot i.e. Home Depot and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Money Managers module to screen money managers from public funds and etfs managed around the world.


 
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