Correlation Analysis Between Home Depot and Citigroup

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 and Citigroup.
Horizon     30 Days    Login   to change
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Comparative Performance

Home Depot  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 3 (%) 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.
Citigroup  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in June 2019.

Home Depot and Citigroup Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  Citigroup Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 2.55 times less return on investment than Citigroup. But when comparing it to its historical volatility, The Home Depot is 1.48 times less risky than Citigroup. It trades about 0.06 of its potential returns per unit of risk. Citigroup is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  6,073  in Citigroup on April 26, 2019 and sell it today you would earn a total of  366.00  from holding Citigroup or generate 6.03% return on investment over 30 days.

Pair Corralation between Home Depot and Citigroup

0.74
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Citigroup

The Home Depot Inc diversification synergy

Poor diversification

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.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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