Pair Correlation Between Best Buy and Aarons

This module allows you to analyze existing cross correlation between Best Buy Co Inc and Aarons Inc. You can compare the effects of market volatilities on Best Buy and Aarons 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 Aarons. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Aarons.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Best Buy Co Inc  vs   Aarons Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 0.72 times more return on investment than Aarons. However, Best Buy Co Inc is 1.38 times less risky than Aarons. It trades about 0.57 of its potential returns per unit of risk. Aarons Inc is currently generating about 0.15 per unit of risk. If you would invest  6,802  in Best Buy Co Inc on December 24, 2017 and sell it today you would earn a total of  1,004  from holding Best Buy Co Inc or generate 14.76% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and Aarons
0.68

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Best Buy Co

  
37 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 37 (%) of all global equities and portfolios over the last 30 days.

Aarons Inc

  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Aarons Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.