This module allows you to analyze existing cross correlation between Best Buy Co and ATT. You can compare the effects of market volatilities on Best Buy and ATT 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 ATT. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days ATT has generated negative risk-adjusted returns adding no value to investors with long positions.
Best Buy and ATT Volatility Contrast
Best Buy Co Inc vs. ATT
Considering 30-days investment horizon, Best Buy Co is expected to under-perform the ATT. In addition to that, Best Buy is 1.52 times more volatile than ATT. It trades about -0.25 of its total potential returns per unit of risk. ATT is currently generating about -0.07 per unit of volatility. If you would invest 3,225 in ATT on November 14, 2018 and sell it today you would lose (203.00) from holding ATT or give up 6.29% of portfolio value over 30 days.
Pair Corralation between Best Buy and ATT
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Diversification Opportunities for Best Buy and ATT
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and ATT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT has no effect on the direction of Best Buy i.e. Best Buy and ATT go up and down completely randomly.