Best Buy Risk Analysis

Best Buy Co Inc -- USA Stock  

USD 74.69  0.43  0.58%

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 Trend
Check current 30 days Best Buy correlation with market (DOW)
β = -0.3737
Best Buy Almost negative 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 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 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).
 Predicted Return Density 
      Returns 
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
α
Alpha over DOW
=0.71
β
Beta against DOW=0.37
σ
Overall volatility
=1.15
Ir
Information ratio =0.25

Actual Return Volatility

Best Buy Co Inc has volatility of 1.1495% on return distribution over 30 days investment horizon. DOW inherits 0.4387% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

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

Total Debt

Best Buy Co Total Debt History

Total Debt

Largest Trends

Best Buy Largest Period Trend

Investment Outlook

Best Buy Investment Opportunity
Best Buy Co Inc has a volatility of 1.15 and is 2.61 times more volatile than DOW. 10% 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 Inc is lower than 10 (%) of all global equities and portfolios over the last 30 days. Use Best Buy Co Inc to enhance returns of your portfolios. The stock experiences moderate upward volatility. Check odds of Best Buy to be traded at $82.16 in 30 days. 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.

Best Buy correlation with market

Good 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.