This module allows you to analyze existing cross correlation between Best Buy Co Inc and Apple Inc. You can compare the effects of market volatilities on Best Buy and Apple 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 Apple. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
Best Buy Co. Inc. vs Apple Inc.
Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 3.6 times more return on investment than Apple. However, Best Buy is 3.6 times more volatile than Apple Inc. It trades about 0.11 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest 5,042 in Best Buy Co Inc on May 24, 2017 and sell it today you would earn a total of 476.00 from holding Best Buy Co Inc or generate 9.44% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co. Inc. and Apple Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Best Buy i.e. Best Buy and Apple go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.