Best Buy Risk Analysis

Best Buy Co -- USA Stock  

USD 73.17  0.33  0.45%

We consider Best Buy not too volatile. Best Buy Co secures Sharpe Ratio (or Efficiency) of 0.0196 which signifies that Best Buy Co had 0.0196% of return per unit of risk over the last 2 months. 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 confirm Best Buy Co Downside Deviation of 1.92, Risk Adjusted Performance of 0.0781 and Mean Deviation of 1.81 to double-check if risk estimate we provide are consistent with the epected return of 0.0414%.
 Time 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.
2 Months Beta |Analyze Best Buy Co Demand Trend
Check current 30 days Best Buy correlation with market (DOW)
β = 0.0321
Best Buy Small BetaBest Buy Co Beta Legend

Best Buy Co Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of thirty-nine. 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 0.0321 . 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 will be expected to be much smaller as well. Moreover, Best Buy Co has an alpha of 0.0884 implying that it can potentially generate 0.0884% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of Best Buy is 5111.97. The daily returns are destributed with a variance of 4.49 and standard deviation of 2.12. The mean deviation of Best Buy Co is currently at 1.79. For similar time horizon, the selected benchmark (DOW) has volatility of 1.65
α
Alpha over DOW
=0.0884
β
Beta against DOW=0.0321
σ
Overall volatility
=2.12
Ir
Information ratio =0.0631

Actual Return Volatility

Best Buy Co has volatility of 2.1183% on return distribution over 30 days investment horizon. DOW inherits 1.4202% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Best Buy Volatility Factors

60 Days Market Risk

Not too volatile

Chance of Distress in 24 months

Almost imposible

60 Days Economic Sensitivity

Barely shadows market

Total Debt

Best Buy Co Total Debt History

Total Debt

Investment Outlook

Best Buy Investment Opportunity
Best Buy Co has a volatility of 2.12 and is 1.49 times more volatile than DOW. 19% 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 19 (%) of all global equities and portfolios over the last 30 days. Use Best Buy Co to protect against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of Best Buy to be traded at $72.44 in 30 days. 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.

Best Buy correlation with market

Significant 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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