Correlation Analysis Between BJs Wholesale and Best Buy

Analyzing existing cross correlation between BJs Wholesale Club Holdings I and Best Buy Co. You can compare the effects of market volatilities on BJs Wholesale and Best Buy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BJs Wholesale with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and Best Buy.
Horizon     30 Days    Login   to change
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Comparative Performance

BJs Wholesale Club  
00

Risk-Adjusted Performance

Over the last 30 days BJs Wholesale Club Holdings I has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of latest unsteady performance, the Stock's technical and fundamental indicators remain consistent and the prevailing confusion on Wall Street may also be a sign of long-lasting gains for the organization traders.
Best Buy  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.

BJs Wholesale and Best Buy Volatility Contrast

 Predicted Return Density 
    
  Returns 

BJs Wholesale Club Holdings I  vs.  Best Buy Co Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, BJs Wholesale Club Holdings I is expected to under-perform the Best Buy. In addition to that, BJs Wholesale is 1.47 times more volatile than Best Buy Co. It trades about -0.04 of its total potential returns per unit of risk. Best Buy Co is currently generating about 0.22 per unit of volatility. If you would invest  7,147  in Best Buy Co on December 18, 2019 and sell it today you would earn a total of  1,748  from holding Best Buy Co or generate 24.46% return on investment over 30 days.

Pair Corralation between BJs Wholesale and Best Buy

-0.78
Time Period3 Months [change]
DirectionNegative 
StrengthWeak
Accuracy74.39%
ValuesDaily Returns

Diversification Opportunities for BJs Wholesale and Best Buy

BJs Wholesale Club Holdings I diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club Holdings I and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and BJs Wholesale is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BJs Wholesale Club Holdings I are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of BJs Wholesale i.e. BJs Wholesale and Best Buy go up and down completely randomly.
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