Correlation Analysis Between Best Buy and Citigroup

This module allows you to analyze existing cross correlation between Best Buy Co and Citigroup. You can compare the effects of market volatilities on Best Buy and Citigroup 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 Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Citigroup.
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.
Citigroup  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2020.

Best Buy and Citigroup Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  Citigroup Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 1.53 times more return on investment than Citigroup. However, Best Buy is 1.53 times more volatile than Citigroup. It trades about 0.14 of its potential returns per unit of risk. Citigroup is currently generating about 0.12 per unit of risk. If you would invest  6,922  in Best Buy Co on November 8, 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 Citigroup

0.91
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and Citigroup

Best Buy Co Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Best Buy i.e. Best Buy and Citigroup go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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