Best Buy Risk Analysis And Volatility Evaluation

BBY -- USA Stock  

USD 78.48  2.95  3.62%

Macroaxis considers Best Buy not too risky given 1 month investment horizon. Best Buy Co secures Sharpe Ratio (or Efficiency) of 0.2176 which signifies that Best Buy Co had 0.2176% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Best Buy Co which you can use to evaluate future volatility of the firm. Please makes use of Best Buy Co Downside Deviation of 1.86, Risk Adjusted Performance of 0.1354 and Mean Deviation of 1.05 to double-check if our risk estimates are consistent with your expectations.
 Time Horizon     30 Days    Login   to change

Best Buy Market Sensitivity

Best Buy returns are very sensitive to returns on the market. As market goes up or down, Best Buy is expected to follow.
One Month Beta |Analyze Best Buy Co Demand Trend
Check current 30 days Best Buy correlation with market (DOW)
β = 0.9538
Best Buy llmost one BetaBest Buy Co Beta Legend

Best Buy Co Technical Analysis

The output start index for this execution was zero with a total number of output elements of seventeen. Best Buy Co Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Considering 30-days investment horizon, Best Buy has beta of 0.9538 . This suggests Best Buy Co market returns are very sensitive to returns on the market. As the market benchmark goes up or down, Best Buy is expected to follow. Moreover, Best Buy Co has an alpha of 0.1645 implying that it can potentially generate 0.1645% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
Considering 30-days investment horizon, the coefficient of variation of Best Buy is 459.64. The daily returns are destributed with a variance of 1.89 and standard deviation of 1.38. The mean deviation of Best Buy Co is currently at 1.05. For similar time horizon, the selected benchmark (DOW) has volatility of 0.6
Alpha over DOW
Beta against DOW=0.95
Overall volatility
Information ratio =0.12

Actual Return Volatility

Best Buy Co has volatility of 1.3756% on return distribution over 30 days investment horizon. DOW inherits 0.5964% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 

Market Risk Breakdown

Best Buy Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Almost imposible

30 Days Economic Sensitivity

Almost neglects market

Investment Outlook

Best Buy Investment Opportunity
Best Buy Co has a volatility of 1.38 and is 2.3 times more volatile than DOW. 12% of all equities and portfolios are less risky than Best Buy. Compared to the overall equity markets, volatility of historical daily returns of Best Buy Co is lower than 12 (%) of all global equities and portfolios over the last 30 days. Use Best Buy Co to protect against small markets fluctuations. The stock experiences unexpected downward movement. The market is reacting to new fundamentals. Check odds of Best Buy to be traded at $75.34 in 30 days. Best Buy returns are very sensitive to returns on the market. As market goes up or down, Best Buy is expected to follow.

Best Buy correlation with market

Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and equity matching DJI index in the same portfolio.
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