Correlation Analysis Between Home Depot and CVS Health

This module allows you to analyze existing cross correlation between The Home Depot and CVS Health Corporation. You can compare the effects of market volatilities on Home Depot and CVS Health 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 CVS Health. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and CVS Health.
Horizon     30 Days    Login   to change
Symbolsvs
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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.
CVS Health  
00

Risk-Adjusted Performance

Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, CVS Health is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short running losses for the management.

Home Depot and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

The Home Depot Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot is expected to generate 0.68 times more return on investment than CVS Health. However, The Home Depot is 1.47 times less risky than CVS Health. It trades about 0.06 of its potential returns per unit of risk. CVS Health Corporation is currently generating about -0.02 per unit of risk. If you would invest  18,925  in The Home Depot on April 26, 2019 and sell it today you would earn a total of  434.00  from holding The Home Depot or generate 2.29% return on investment over 30 days.

Pair Corralation between Home Depot and CVS Health

-0.07
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Home Depot and CVS Health

The Home Depot Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Home Depot i.e. Home Depot and CVS Health go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.


 
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