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|
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Best Buy and Citigroup Volatility Contrast
Predicted Return Density
Best Buy Co Inc vs. Citigroup Inc
Considering 30-days investment horizon, Best Buy Co is expected to generate 1.56 times more return on investment than Citigroup. However, Best Buy is 1.56 times more volatile than Citigroup. It trades about -0.01 of its potential returns per unit of risk. Citigroup is currently generating about -0.07 per unit of risk. If you would invest 6,747 in Best Buy Co on July 22, 2019 and sell it today you would lose (143.00) from holding Best Buy Co or give up 2.12% of portfolio value over 30 days.
Pair Corralation between Best Buy and Citigroup
|Time Period||2 Months [change]|
Diversification Opportunities for Best Buy and Citigroup
Very poor 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. macroaxis watchlist is based on self-learning algorithm to remember stocks you like.