Pair Correlation Between CVS Health and Best Buy

This module allows you to analyze existing cross correlation between CVS Health Corporation and Best Buy Co Inc. 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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 CVS Health Corp.  vs   Best Buy Co Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, CVS Health Corporation is expected to generate 0.37 times more return on investment than Best Buy. However, CVS Health Corporation is 2.72 times less risky than Best Buy. It trades about 0.23 of its potential returns per unit of risk. Best Buy Co Inc is currently generating about -0.19 per unit of risk. If you would invest  7,546  in CVS Health Corporation on August 26, 2017 and sell it today you would earn a total of  417.00  from holding CVS Health Corporation or generate 5.53% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between CVS Health and Best Buy
-0.29

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Diversification

Very good 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 Co 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 Co has no effect on the direction of CVS Health i.e. CVS Health and Best Buy go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

CVS Health

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

Best Buy Co

  
0 

Risk-Adjusted Performance

Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.