This module allows you to analyze existing cross correlation between ATT Inc and Best Buy Co Inc. You can compare the effects of market volatilities on ATT 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 ATT with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of ATT
and Best Buy
AT&T Inc. vs Best Buy Co Inc
Taking into account the 30 trading days horizon, ATT Inc is expected to generate 0.48 times more return on investment than Best Buy. However, ATT Inc is 2.07 times less risky than Best Buy. It trades about -0.21 of its potential returns per unit of risk. Best Buy Co Inc is currently generating about -0.13 per unit of risk. If you would invest 3,647 in ATT Inc on February 22, 2018 and sell it today you would lose (177.00) from holding ATT Inc or give up 4.85% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding AT&T 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 Co and ATT 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 ATT Inc 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 ATT i.e. ATT and Best Buy go up and down completely randomly.
Over the last 30 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.