Correlation Analysis Between DOW and Best Buy

This module allows you to analyze existing cross correlation between DOW and Best Buy Co. You can compare the effects of market volatilities on DOW and Best Buy 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 DOW with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Best Buy.
Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.49 times more return on investment than Best Buy. However, DOW is 2.04 times less risky than Best Buy. It trades about -0.06 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.19 per unit of risk. If you would invest  2,533,999  in DOW on November 12, 2018 and sell it today you would lose (81,272)  from holding DOW or give up 3.21% of portfolio value over 30 days.

Pair Corralation between DOW and Best Buy

0.61
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

DOW diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and DOW 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 DOW are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of DOW i.e. DOW and Best Buy go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

My Equities

My Current Equities and Potential Positions

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1063.68

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See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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