Correlation Analysis Between Citigroup and Best Buy

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
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Comparative Performance

Citigroup  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2020.
Best Buy  
1313

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. Inspite fairly inconsistent basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.

Citigroup and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

Citigroup Inc  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Citigroup is expected to generate 2.54 times less return on investment than Best Buy. But when comparing it to its historical volatility, Citigroup is 1.5 times less risky than Best Buy. It trades about 0.12 of its potential returns per unit of risk. Best Buy Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  6,754  in Best Buy Co on November 12, 2019 and sell it today you would earn a total of  1,781  from holding Best Buy Co or generate 26.37% return on investment over 30 days.

Pair Corralation between Citigroup and Best Buy

0.91
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Citigroup and Best Buy

Citigroup Inc diversification synergy

Almost no 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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