This module allows you to analyze existing cross correlation between Best Buy Co Inc and CVS Health Corporation. You can compare the effects of market volatilities on Best Buy and CVS Health 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 CVS Health. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
and CVS Health
Best Buy Co Inc vs CVS Health Corp.
Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 0.94 times more return on investment than CVS Health. However, Best Buy Co Inc is 1.07 times less risky than CVS Health. It trades about 0.58 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.34 per unit of risk. If you would invest 6,711 in Best Buy Co Inc on December 22, 2017 and sell it today you would earn a total of 975 from holding Best Buy Co Inc or generate 14.53% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and CVS Health Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Best Buy i.e. Best Buy and CVS Health 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 38 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.