Correlation Analysis Between Sprint and Best Buy

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

Sprint  
00

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2020. The latest agitation may also be a sign of long running up-swing for the enterprise management.
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 inconsistent basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.

Sprint and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

Sprint Corp.  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, Sprint Corporation is 1.19 times less risky than Best Buy. The stock trades about -0.2 of its potential returns per unit of risk. The 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 Sprint and Best Buy

-0.66
Time Period3 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and Best Buy

Sprint Corp. diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sprint 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 Sprint 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 Sprint 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 Sprint i.e. Sprint and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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