Pair Correlation Between Best Buy and Dollar Tree

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

Pair Volatility

Considering 30-days investment horizon, Best Buy is expected to generate 2.26 times less return on investment than Dollar Tree. In addition to that, Best Buy is 1.74 times more volatile than Dollar Tree Inc. It trades about 0.12 of its total potential returns per unit of risk. Dollar Tree Inc is currently generating about 0.48 per unit of volatility. If you would invest  8,462  in Dollar Tree Inc on September 22, 2017 and sell it today you would earn a total of  775  from holding Dollar Tree Inc or generate 9.16% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and Dollar Tree
0.07

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Significant diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Best Buy Co

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Dollar Tree Inc

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar Tree Inc are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.