Correlation Between Upexi and Home Depot

Can any of the company-specific risk be diversified away by investing in both Upexi and Home Depot at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Upexi and Home Depot into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Upexi Inc and Home Depot, you can compare the effects of market volatilities on Upexi 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 Upexi with a short position of Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upexi and Home Depot.

Diversification Opportunities for Upexi and Home Depot

-0.32

Correlation Coefficient

Upexi  Home Depot

Very good diversification

The 3 months correlation between Upexi and Home is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Upexi Inc and Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot and Upexi 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 Upexi Inc 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 Upexi i.e., Upexi and Home Depot go up and down completely randomly.

Pair Corralation between Upexi and Home Depot

Given the investment horizon of 90 days Upexi Inc is expected to under-perform the Home Depot. In addition to that, Upexi is 11.31 times more volatile than Home Depot. It trades about -0.04 of its total potential returns per unit of risk. Home Depot is currently generating about 0.06 per unit of volatility. If you would invest  35,950  in Home Depot on May 5, 2025 and sell it today you would earn a total of  1,416  from holding Home Depot or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Upexi Inc  vs.  Home Depot

Upexi Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upexi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Home Depot

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Home Depot are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Home Depot is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Upexi and Home Depot

The main advantage of trading using opposite Upexi and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upexi position performs unexpectedly, Home Depot can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Home Depot will offset losses from the drop in Home Depot's long position.

The idea behind Upexi Inc and Home Depot pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.