Correlation Analysis Between Best Buy and Home Depot

This module allows you to analyze existing cross correlation between Best Buy Co and Home Depot. You can compare the effects of market volatilities on Best Buy and Home Depot 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 Home Depot. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Home Depot.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

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 weak basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.
Home Depot  
00

Risk-Adjusted Performance

Over the last 30 days Home Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Best Buy and Home Depot Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  Home Depot Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 1.78 times more return on investment than Home Depot. However, Best Buy is 1.78 times more volatile than Home Depot. It trades about 0.15 of its potential returns per unit of risk. Home Depot is currently generating about -0.11 per unit of risk. If you would invest  6,922  in Best Buy Co on November 7, 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 Home Depot

-0.32
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and Home Depot

Best Buy Co Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot 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 Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of Best Buy i.e. Best Buy and Home Depot go up and down completely randomly.
See also your portfolio center. Please also try Companies Directory module to evaluate performance of over 100,000 stocks, funds, and etfs against different fundamentals.


 
Search macroaxis.com