HD vs NKE: Correlation
How closely do Home Depot (The) (HD) and Nike, Inc. (NKE) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and NKE?
Over the past 3 years, HD and NKE moved with a correlation of 0.40, which is moderate. Little has changed lately, as the 1-year reading of 0.43 lands near the 3-year figure. Over 5 years the correlation is 0.44, and the annualized covariance of weekly returns is 347.5 %².
By 3-year correlation, NKE places #40 of the 54 assets tracked against HD. Their recent paths diverged sharply: over the last 12 months HD outperformed by 32.0 percentage points (-17.4% for HD against -49.4% for NKE). Across three years, the rolling one-year figure varied moderately, from 0.14 to 0.58. One caveat on sizing: NKE is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
HD vs NKE: side by side
| HD (Home Depot (The)) | NKE (Nike, Inc.) | |
|---|---|---|
| 1-year return | -17.4% | -49.4% |
| 5-year return | +13.8% | -75.2% |
| Volatility (ann.) | 23.6% | 36.6% |
| Beta vs S&P 500 | 0.87 | 0.93 |
| Max drawdown (3Y) | -28.8% | -66.9% |
| Market cap | $327.9B | $57.0B |
| P/E (trailing) | 23.4 | 18.4 |
| Dividend yield | 1.38% | 4.22% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | HD | NKE |
|---|---|---|
| 2022 | -22.0% | -29.0% |
| 2023 | +12.8% | -6.0% |
| 2024 | +15.0% | -29.1% |
| 2025 | -9.3% | -13.8% |
| 2026 | -3.1% | -38.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and NKE good diversifiers for each other?
Reasonably. At 0.40, HD and NKE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HD and NKE?
As of 2026-08-27, the correlation of weekly returns between HD and NKE is 0.40 over 3 years, 0.43 over 1 year and 0.44 over 5 years.
Is NKE a good diversifier for HD?
Reasonably. At 0.40, HD and NKE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: HD correlations · NKE correlations
