Pair Correlation Between Home Depot and Apple

This module allows you to analyze existing cross correlation between The Home Depot Inc and Apple Inc. You can compare the effects of market volatilities on Home Depot and Apple 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 Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Apple.
Investment Horizon     30 Days    Login   to change
 The Home Depot Inc.  vs   Apple Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 1.52 times less return on investment than Apple. But when comparing it to its historical volatility, The Home Depot Inc is 1.14 times less risky than Apple. It trades about 0.12 of its potential returns per unit of risk. Apple Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  13,711  in Apple Inc on February 22, 2017 and sell it today you would earn a total of  355.08  from holding Apple Inc or generate 2.59% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Home Depot and Apple
0.77

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc. and Apple Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Inc are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Home Depot i.e. Home Depot and Apple go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

The Home Depot

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Apple Inc

  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.