Correlation Analysis Between Best Buy and CVS Health

This module allows you to analyze existing cross correlation between Best Buy Co 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.
Horizon     30 Days    Login   to change
Symbolsvs
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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 inconsistent basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.
CVS Health  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.

Best Buy and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 1.52 times more return on investment than CVS Health. However, Best Buy is 1.52 times more volatile than CVS Health Corporation. It trades about 0.14 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.21 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 CVS Health

0.9
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and CVS Health

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 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 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.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.


 
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