This module allows you to analyze existing cross correlation between Home Depot and International Business Machines. You can compare the effects of market volatilities on Home Depot and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and International Business.
|Horizon||30 Days Login to change|
Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. 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.
Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
Home Depot and International Business Volatility Contrast
Predicted Return Density
Home Depot Inc vs. International Business Machine
Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.83 times more return on investment than International Business. However, Home Depot is 1.2 times less risky than International Business. It trades about -0.04 of its potential returns per unit of risk. International Business Machines is currently generating about -0.03 per unit of risk. If you would invest 20,794 in Home Depot on July 19, 2019 and sell it today you would lose (429.00) from holding Home Depot or give up 2.06% of portfolio value over 30 days.
Pair Corralation between Home Depot and International Business
|Time Period||2 Months [change]|
Diversification Opportunities for Home Depot and International Business
Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Home Depot i.e. Home Depot and International Business go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.