This module allows you to analyze existing cross correlation between Home Depot and Citigroup. You can compare the effects of market volatilities on Home Depot and Citigroup 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 Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Citigroup.
|Horizon||30 Days Login to change|
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 30 days. 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 Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Home Depot and Citigroup Volatility Contrast
Predicted Return Density
Home Depot Inc vs. Citigroup Inc
Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.8 times more return on investment than Citigroup. However, Home Depot is 1.26 times less risky than Citigroup. It trades about 0.07 of its potential returns per unit of risk. Citigroup is currently generating about -0.07 per unit of risk. If you would invest 20,939 in Home Depot on July 21, 2019 and sell it today you would earn a total of 734.00 from holding Home Depot or generate 3.51% return on investment over 30 days.
Pair Corralation between Home Depot and Citigroup
|Time Period||2 Months [change]|
Diversification Opportunities for Home Depot and Citigroup
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Home Depot i.e. Home Depot and Citigroup go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.