Correlation Between Home Depot and Peerless Option
Can any of the company-specific risk be diversified away by investing in both Home Depot and Peerless Option 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 Peerless Option 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 Peerless Option Income, you can compare the effects of market volatilities on Home Depot and Peerless Option 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 Peerless Option. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Peerless Option.
Diversification Opportunities for Home Depot and Peerless Option
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Peerless is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot and Peerless Option Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerless Option Income 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 Peerless Option. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peerless Option Income has no effect on the direction of Home Depot i.e., Home Depot and Peerless Option go up and down completely randomly.
Pair Corralation between Home Depot and Peerless Option
Allowing for the 90-day total investment horizon The Home Depot is expected to under-perform the Peerless Option. In addition to that, Home Depot is 2.77 times more volatile than Peerless Option Income. It trades about -0.17 of its total potential returns per unit of risk. Peerless Option Income is currently generating about 0.14 per unit of volatility. If you would invest 1,981 in Peerless Option Income on September 6, 2025 and sell it today you would earn a total of 89.00 from holding Peerless Option Income or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
The Home Depot vs. Peerless Option Income
Performance |
| Timeline |
| Home Depot |
| Peerless Option Income |
Home Depot and Peerless Option Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Peerless Option
The main advantage of trading using opposite Home Depot and Peerless Option positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot position performs unexpectedly, Peerless Option 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 Peerless Option will offset losses from the drop in Peerless Option's long position.| Home Depot vs. Floor Decor Holdings | Home Depot vs. Lowes Companies | Home Depot vs. HOME DEPOT CDR | Home Depot vs. GrowGeneration Corp |
| Peerless Option vs. Strategy Shares | Peerless Option vs. Freedom Day Dividend | Peerless Option vs. Franklin Templeton ETF | Peerless Option vs. iShares MSCI China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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