Correlation Analysis Between Home Depot and Sprint

This module allows you to analyze existing cross correlation between Home Depot and Sprint Corporation. You can compare the effects of market volatilities on Home Depot and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Sprint.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Home Depot  
00

Risk-Adjusted Performance

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 new stock price tumult, may contribute to shorter-term losses for the shareholders.
Sprint  
00

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of latest fragile performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long running gains for the enterprise management.

Home Depot and Sprint Volatility Contrast

 Predicted Return Density 
      Returns 

Home Depot Inc  vs.  Sprint Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Home Depot is expected to generate 0.42 times more return on investment than Sprint. However, Home Depot is 2.39 times less risky than Sprint. It trades about -0.02 of its potential returns per unit of risk. Sprint Corporation is currently generating about -0.04 per unit of risk. If you would invest  21,125  in Home Depot on July 20, 2019 and sell it today you would lose (330.00)  from holding Home Depot or give up 1.56% of portfolio value over 30 days.

Pair Corralation between Home Depot and Sprint

0.62
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Home Depot and Sprint

Home Depot Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Home Depot Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Home Depot i.e. Home Depot and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.


 
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