Correlation Between Home Depot and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Home Depot and Equitable Holdings 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 Home Depot and Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Home Depot and Equitable Holdings, you can compare the effects of market volatilities on Home Depot and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Equitable Holdings.
Diversification Opportunities for Home Depot and Equitable Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and Equitable is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 are associated (or correlated) with Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Home Depot i.e., Home Depot and Equitable Holdings go up and down completely randomly.
Pair Corralation between Home Depot and Equitable Holdings
Allowing for the 90-day total investment horizon The Home Depot is expected to under-perform the Equitable Holdings. In addition to that, Home Depot is 2.4 times more volatile than Equitable Holdings. It trades about -0.22 of its total potential returns per unit of risk. Equitable Holdings is currently generating about -0.19 per unit of volatility. If you would invest 1,714 in Equitable Holdings on August 27, 2025 and sell it today you would lose (107.00) from holding Equitable Holdings or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Home Depot vs. Equitable Holdings
Performance |
| Timeline |
| Home Depot |
| Equitable Holdings |
Home Depot and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Equitable Holdings
The main advantage of trading using opposite Home Depot and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Home Depot vs. Hyperscale Data, | Home Depot vs. ScanSource | Home Depot vs. CanSino Biologics | Home Depot vs. Datatec Limited |
| Equitable Holdings vs. BG Foods | Equitable Holdings vs. Kestra Medical Technologies, | Equitable Holdings vs. Profound Medical Corp | Equitable Holdings vs. Journey Medical Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |