This module allows you to analyze existing cross correlation between Citigroup and Best Buy Co. You can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Best Buy.
|Horizon||30 Days Login to change|
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
Citigroup and Best Buy Volatility Contrast
Predicted Return Density
Citigroup Inc vs. Best Buy Co Inc
Taking into account the 30 trading days horizon, Citigroup is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.56 times less risky than Best Buy. The stock trades about -0.07 of its potential returns per unit of risk. The Best Buy Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,839 in Best Buy Co on July 20, 2019 and sell it today you would lose (177.00) from holding Best Buy Co or give up 2.59% of portfolio value over 30 days.
Pair Corralation between Citigroup and Best Buy
|Time Period||2 Months [change]|
Diversification Opportunities for Citigroup and Best Buy
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc 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 Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.