Best Buy Risk Analysis And Volatility Evaluation

BBY -- USA Stock  

USD 75.48  0.40  0.53%

Macroaxis considers Best Buy to be not too risky. Best Buy Co secures Sharpe Ratio (or Efficiency) of -0.0694 which signifies that Best Buy Co had -0.0694% of return per unit of risk over the last 1 month. Macroaxis philosophy towards foreseeing risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Best Buy Co exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Best Buy Co Downside Deviation of 1.51, Risk Adjusted Performance of 0.0637 and Mean Deviation of 1.21 to double-check risk estimate we provide.
 Time Horizon     30 Days    Login   to change

Best Buy Market Sensitivity

One Month Beta |Analyze Best Buy Co Demand Trend
Check current 30 days Best Buy correlation with market (DOW)
β = -0.9005
Best Buy llmost one 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 has beta of -0.9005 . This suggests Moreover, Best Buy Co has an alpha of 0.2434 implying that it can potentially generate 0.2434% 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 -1440.24. The daily returns are destributed with a variance of 1.7 and standard deviation of 1.3. The mean deviation of Best Buy Co is currently at 1.03. For similar time horizon, the selected benchmark (DOW) has volatility of 0.6
α
Alpha over DOW
=0.24
β
Beta against DOW=0.9
σ
Overall volatility
=1.30
Ir
Information ratio =0.0065

Actual Return Volatility

Best Buy Co has volatility of 1.3031% on return distribution over 30 days investment horizon. DOW inherits 0.6387% 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

Totally opposite to market

Investment Outlook

Best Buy Investment Opportunity
Best Buy Co has a volatility of 1.3 and is 2.03 times more volatile than DOW. 11% 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 11 (%) of all global equities and portfolios over the last 30 days. Use Best Buy Co to protect against small markets fluctuations. The stock experiences moderate downward daily trend and can be a good diversifier. Check odds of Best Buy to be traded at $73.97 in 30 days.

Best Buy correlation with market

Very 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.
Check also Trending Equities. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.