This module allows you to analyze existing cross correlation between Sprint Corporation and Home Depot. You can compare the effects of market volatilities on Sprint and Home Depot 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 Sprint with a short position of Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and Home Depot.
|Horizon||30 Days Login to change|
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
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 late stock price tumult, may contribute to shorter-term losses for the shareholders.
Sprint and Home Depot Volatility Contrast
Predicted Return Density
Sprint Corp. vs. Home Depot Inc
Taking into account the 30 trading days horizon, Sprint Corporation is expected to under-perform the Home Depot. In addition to that, Sprint is 2.46 times more volatile than Home Depot. It trades about -0.02 of its total potential returns per unit of risk. Home Depot is currently generating about -0.03 per unit of volatility. If you would invest 20,748 in Home Depot on July 18, 2019 and sell it today you would lose (383.00) from holding Home Depot or give up 1.85% of portfolio value over 30 days.
Pair Corralation between Sprint and Home Depot
|Time Period||2 Months [change]|
Diversification Opportunities for Sprint and Home Depot
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Sprint 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 Sprint Corporation are associated (or correlated) with Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of Sprint i.e. Sprint and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.