Pair Correlation Between Home Depot and Best Buy

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

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot Inc is expected to generate 0.25 times more return on investment than Best Buy. However, The Home Depot Inc is 4.07 times less risky than Best Buy. It trades about 0.14 of its potential returns per unit of risk. Best Buy Co Inc is currently generating about -0.03 per unit of risk. If you would invest  14,525  in The Home Depot Inc on February 22, 2017 and sell it today you would earn a total of  274.00  from holding The Home Depot Inc or generate 1.89% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Home Depot and Best Buy


Time Period1 Month [change]
ValuesDaily Returns


Significant diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

The Home Depot


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

Best Buy Co


Risk-Adjusted Performance

Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.