Pair Correlation Between Best Buy and International Business

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

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to under-perform the International Business. In addition to that, Best Buy is 4.75 times more volatile than International Business Machines Corporation. It trades about -0.08 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.15 per unit of volatility. If you would invest  14,455  in International Business Machines Corporation on September 17, 2017 and sell it today you would earn a total of  228  from holding International Business Machines Corporation or generate 1.58% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and International Business
0.24

Parameters

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

Diversification

Modest diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Best Buy Co

  
0 

Risk-Adjusted Performance

Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

International Business

  
10 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.