This module allows you to analyze existing cross correlation between The Home Depot and Citigroup. You can compare the effects of market volatilities on Home Depot and Citigroup 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 Citigroup. See also your portfolio center
. Please also check ongoing floating volatility patterns of Home Depot
Over the last 30 days The Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions.
Home Depot and Citigroup Volatility Contrast
The Home Depot Inc vs. Citigroup Inc
Allowing for the 30-days total investment horizon, The Home Depot is expected to generate 0.89 times more return on investment than Citigroup. However, The Home Depot is 1.13 times less risky than Citigroup. It trades about -0.08 of its potential returns per unit of risk. Citigroup is currently generating about -0.31 per unit of risk. If you would invest 17,985 in The Home Depot on November 18, 2018 and sell it today you would lose (986.00) from holding The Home Depot or give up 5.48% of portfolio value over 30 days.
Pair Corralation between Home Depot and Citigroup
|Time Period||2 Months [change]|
Diversification Opportunities for Home Depot and Citigroup
Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Home Depot i.e. Home Depot and Citigroup go up and down completely randomly.