Correlation Analysis Between Home Depot and Apple

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

The Home Depot Inc  vs.  Apple Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 50.76 times less return on investment than Apple. But when comparing it to its historical volatility, The Home Depot is 1.47 times less risky than Apple. It trades about 0.01 of its potential returns per unit of risk. Apple is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  16,232  in Apple on April 27, 2018 and sell it today you would earn a total of  2,626  from holding Apple or generate 16.18% return on investment over 30 days.

Pair Corralation between Home Depot and Apple

0.42
Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
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 Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple has no effect on the direction of Home Depot i.e. Home Depot and Apple 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.
Apple  
34 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 34 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1079.24

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