Correlation Between Home Depot and YieldMax Nasdaq
Can any of the company-specific risk be diversified away by investing in both Home Depot and YieldMax Nasdaq 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 YieldMax Nasdaq 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 YieldMax Nasdaq 100, you can compare the effects of market volatilities on Home Depot and YieldMax Nasdaq 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 YieldMax Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and YieldMax Nasdaq.
Diversification Opportunities for Home Depot and YieldMax Nasdaq
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and YieldMax is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot and YieldMax Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax Nasdaq 100 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 YieldMax Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax Nasdaq 100 has no effect on the direction of Home Depot i.e., Home Depot and YieldMax Nasdaq go up and down completely randomly.
Pair Corralation between Home Depot and YieldMax Nasdaq
Allowing for the 90-day total investment horizon The Home Depot is expected to under-perform the YieldMax Nasdaq. In addition to that, Home Depot is 1.36 times more volatile than YieldMax Nasdaq 100. It trades about -0.15 of its total potential returns per unit of risk. YieldMax Nasdaq 100 is currently generating about 0.09 per unit of volatility. If you would invest 4,169 in YieldMax Nasdaq 100 on August 28, 2025 and sell it today you would earn a total of 228.00 from holding YieldMax Nasdaq 100 or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Home Depot vs. YieldMax Nasdaq 100
Performance |
| Timeline |
| Home Depot |
| YieldMax Nasdaq 100 |
Home Depot and YieldMax Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and YieldMax Nasdaq
The main advantage of trading using opposite Home Depot and YieldMax Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, YieldMax Nasdaq 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 YieldMax Nasdaq will offset losses from the drop in YieldMax Nasdaq's long position.| Home Depot vs. CVS Health Corp | Home Depot vs. Spirent Communications plc | Home Depot vs. British American Tobacco | Home Depot vs. Catalyst Metals Limited |
| YieldMax Nasdaq vs. FT Vest Equity | YieldMax Nasdaq vs. Northern Lights | YieldMax Nasdaq vs. Diamond Hill Funds | YieldMax Nasdaq vs. Dimensional International High |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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