Correlation Analysis Between International Business and Best Buy

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

International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
Best Buy  
00

Risk-Adjusted Performance

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.

International Business and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines is 1.86 times less risky than Best Buy. The stock trades about -0.03 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 International Business and Best Buy

0.79
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Best Buy

International Business Machine diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e. International Business and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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