We consider Best Buy not too risky. Best Buy Co secures Sharpe Ratio (or Efficiency) of 0.1057 which signifies that Best Buy Co had 0.1057% 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-eight technical indicators for Best Buy Co Inc which you can use to evaluate future volatility of the firm. Please confirm Best Buy Co Downside Deviation of 1.71, Risk Adjusted Performance of 0.0393 and Mean Deviation of 0.9332 to double-check if risk estimate we provide are consistent with the epected return of 0.1559%.
|Investment Horizon||30 Days Login to change|
Best Buy Market Sensitivity
|As returns on market increase, Best Buy returns are expected to increase less than the market. However during bear market, the loss on holding Best Buy will be expected to be smaller as well.One Month Beta |Analyze Best Buy Co Demand TrendCheck current 30 days Best Buy correlation with market (DOW)|
β = 0.3348
Projected Return Density Against MarketConsidering 30-days investment horizon, Best Buy has beta of 0.3348 . This suggests as returns on market go up, Best Buy average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Best Buy Co Inc will be expected to be much smaller as well. Moreover, Best Buy Co Inc has an alpha of 0.0943 implying that it can potentially generate 0.0943% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of Best Buy is 945.88. The daily returns are destributed with a variance of 2.17 and standard deviation of 1.47. The mean deviation of Best Buy Co Inc is currently at 0.96. For similar time horizon, the selected benchmark (DOW) has volatility of 0.27