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.
Investment 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 is expected to generate 2.59 times less return on investment than Aarons. But when comparing it to its historical volatility, Best Buy Co Inc is 1.16 times less risky than Aarons. It trades about 0.1 of its potential returns per unit of risk. Aarons Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,942  in Aarons Inc on September 23, 2017 and sell it today you would earn a total of  332  from holding Aarons Inc or generate 8.42% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and Aarons
0.86

Parameters

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

Diversification

Very 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

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.

Aarons Inc

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Aarons Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.