This module allows you to analyze existing cross correlation between Best Buy Co Inc and Ford Motor Company. You can compare the effects of market volatilities on Best Buy and Ford Motor 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 Ford Motor. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
and Ford Motor
Best Buy Co Inc vs Ford Motor Company
Considering 30-days investment horizon, Best Buy Co Inc is expected to under-perform the Ford Motor. In addition to that, Best Buy is 1.62 times more volatile than Ford Motor Company. It trades about -0.11 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.14 per unit of volatility. If you would invest 1,076 in Ford Motor Company on February 15, 2018 and sell it today you would earn a total of 39.00 from holding Ford Motor Company or generate 3.62% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Best Buy i.e. Best Buy and Ford Motor go up and down completely randomly.
Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.