This module allows you to analyze existing cross correlation between Best Buy Co and Visa. You can compare the effects of market volatilities on Best Buy and Visa 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 Visa. 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 Visa has generated negative risk-adjusted returns adding no value to investors with long positions.
Best Buy and Visa Volatility Contrast
Best Buy Co Inc vs. Visa Inc
Considering 30-days investment horizon, Best Buy Co is expected to under-perform the Visa. In addition to that, Best Buy is 1.33 times more volatile than Visa. It trades about -0.25 of its total potential returns per unit of risk. Visa is currently generating about 0.01 per unit of volatility. If you would invest 13,723 in Visa on November 14, 2018 and sell it today you would earn a total of 31.00 from holding Visa or generate 0.23% return on investment over 30 days.
Pair Corralation between Best Buy and Visa
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Diversification Opportunities for Best Buy and Visa
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa has no effect on the direction of Best Buy i.e. Best Buy and Visa go up and down completely randomly.