Correlation Analysis Between Best Buy and Alcoa

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

Best Buy  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.
Alcoa  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Alcoa is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short term losses for the investors.

Best Buy and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 0.71 times more return on investment than Alcoa. However, Best Buy Co is 1.41 times less risky than Alcoa. It trades about 0.15 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.02 per unit of risk. If you would invest  6,922  in Best Buy Co on November 7, 2019 and sell it today you would earn a total of  1,283  from holding Best Buy Co or generate 18.54% return on investment over 30 days.

Pair Corralation between Best Buy and Alcoa

0.22
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and Alcoa

Best Buy Co Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Best Buy 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 Best Buy Co are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Best Buy i.e. Best Buy and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.


 
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