Macroaxis considers Best Buy not too risky given 1 month investment horizon. Best Buy Co secures Sharpe Ratio (or Efficiency) of 0.497 which signifies that Best Buy Co had 0.497% 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. By analyzing Best Buy Co technical indicators you can presently evaluate if the expected return of 0.5713% is justified by implied risk. Please makes use of Best Buy Co Risk Adjusted Performance of 0.2129 and Mean Deviation of 1.02 to double-check if our risk estimates are consistent with your expectations.
|Time Horizon||30 Days Login to change|
Best Buy Market Sensitivity
|As returns on market increase, returns on owning Best Buy are expected to decrease at a much smaller rate. During bear market, Best Buy is likely to outperform the market.One Month Beta |Analyze Best Buy Co Demand TrendCheck current 30 days Best Buy correlation with market (DOW)|
β = -0.3737
Best Buy Co Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, Best Buy Co Inc has beta of -0.3737 . This suggests as returns on benchmark increase, returns on holding Best Buy are expected to decrease at a much smaller rate. During bear market, however, Best Buy Co Inc is likely to outperform the market. Moreover, Best Buy Co Inc has an alpha of 0.7138 implying that it can potentially generate 0.7138% 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 201.21. The daily returns are destributed with a variance of 1.32 and standard deviation of 1.15. The mean deviation of Best Buy Co Inc is currently at 0.88. For similar time horizon, the selected benchmark (DOW) has volatility of 0.43