This module allows you to analyze existing cross correlation between Macys and Best Buy Co. You can compare the effects of market volatilities on Macys 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 Macys with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
and Best Buy
Over the last 30 days Macys has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions.
Macys and Best Buy Volatility Contrast
Macys Inc vs. Best Buy Co Inc
Taking into account the 30 trading days horizon, Macys is expected to generate 1.04 times more return on investment than Best Buy. However, Macys is 1.04 times more volatile than Best Buy Co. It trades about -0.06 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.25 per unit of risk. If you would invest 3,351 in Macys on November 15, 2018 and sell it today you would lose (290.00) from holding Macys or give up 8.65% of portfolio value over 30 days.
Pair Corralation between Macys and Best Buy
|Time Period||2 Months [change]|
Diversification Opportunities for Macys and Best Buy
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Macys 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 Macys 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 Macys 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 Macys i.e. Macys and Best Buy go up and down completely randomly.