Pair Correlation Between Best Buy and Dollar General

This module allows you to analyze existing cross correlation between Best Buy Co Inc and Dollar General Corporation. You can compare the effects of market volatilities on Best Buy and Dollar General 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 Dollar General. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Dollar General.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Best Buy Co Inc  vs   Dollar General Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 1.22 times more return on investment than Dollar General. However, Best Buy is 1.22 times more volatile than Dollar General Corporation. It trades about 0.36 of its potential returns per unit of risk. Dollar General Corporation is currently generating about 0.39 per unit of risk. If you would invest  5,697  in Best Buy Co Inc on November 12, 2017 and sell it today you would earn a total of  703  from holding Best Buy Co Inc or generate 12.34% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and Dollar General
0.87

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Dollar General Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Best Buy i.e. Best Buy and Dollar General go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Best Buy Co

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.

Dollar General

  
25 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar General Corporation are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.