Pair Correlation Between Best Buy and Vipshop Holdings

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

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to under-perform the Vipshop Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Best Buy Co Inc is 1.65 times less risky than Vipshop Holdings. The stock trades about -0.16 of its potential returns per unit of risk. The Vipshop Holdings Limited is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,600  in Vipshop Holdings Limited on January 22, 2018 and sell it today you would earn a total of  238.00  from holding Vipshop Holdings Limited or generate 14.88% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Best Buy and Vipshop Holdings
0.22

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 Vipshop Holdings Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings Limited 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 Vipshop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vipshop Holdings Limited has no effect on the direction of Best Buy i.e. Best Buy and Vipshop Holdings 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.

Vipshop Holdings Limited

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.