Correlation Analysis Between CVS Health and Best Buy

This module allows you to analyze existing cross correlation between CVS Health Corporation and Best Buy Co. You can compare the effects of market volatilities on CVS Health 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 CVS Health with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Best Buy.
Horizon     30 Days    Login   to change
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Comparative Performance

CVS Health  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
Best Buy  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 9 (%) 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.

CVS Health and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

CVS Health Corp.  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health is expected to generate 1.05 times less return on investment than Best Buy. But when comparing it to its historical volatility, CVS Health Corporation is 1.52 times less risky than Best Buy. It trades about 0.21 of its potential returns per unit of risk. Best Buy Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,922  in Best Buy Co on November 8, 2019 and sell it today you would earn a total of  1,283  from holding Best Buy Co or generate 18.54% return on investment over 30 days.

Pair Corralation between CVS Health and Best Buy

0.9
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for CVS Health and Best Buy

CVS Health Corp. diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding CVS Health Corp. 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 CVS Health 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 CVS Health Corporation 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 CVS Health i.e. CVS Health and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.


 
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