Correlation Between Home Depot and Barnes Noble
Can any of the company-specific risk be diversified away by investing in both Home Depot and Barnes Noble at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Home Depot and Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Barnes Noble, you can compare the effects of market volatilities on Home Depot and Barnes Noble 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 Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Barnes Noble.
Diversification Opportunities for Home Depot and Barnes Noble
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Home and Barnes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot and Barnes Noble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble 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 Home Depot are associated (or correlated) with Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble has no effect on the direction of Home Depot i.e., Home Depot and Barnes Noble go up and down completely randomly.
Pair Corralation between Home Depot and Barnes Noble
If you would invest (100.00) in Barnes Noble on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Barnes Noble or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Home Depot vs. Barnes Noble
Performance |
| Timeline |
| Home Depot |
| Barnes Noble |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Home Depot and Barnes Noble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Barnes Noble
The main advantage of trading using opposite Home Depot and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Barnes Noble can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Barnes Noble will offset losses from the drop in Barnes Noble's long position.| Home Depot vs. Arhaus Inc | Home Depot vs. Haverty Furniture Companies | Home Depot vs. Kirklands | Home Depot vs. Live Ventures |
| Barnes Noble vs. CAVA Group | Barnes Noble vs. Xunlei Ltd Adr | Barnes Noble vs. Innovid Corp | Barnes Noble vs. First Watch Restaurant |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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