This module allows you to analyze existing cross correlation between Alcoa Corporation and Best Buy Co. You can compare the effects of market volatilities on Alcoa 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 Alcoa with a short position of Best Buy. See also
your portfolio center. Please also check ongoing floating volatility patterns of
Alcoa and
Best Buy.
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Horizon
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30 Days
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to change
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Comparative Performance
Risk-Adjusted Performance
Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
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.
Alcoa and Best Buy Volatility Contrast
Alcoa Corp. vs. Best Buy Co Inc
Pair Volatility
Allowing for the 30-days total investment horizon, Alcoa is expected to generate 1.33 times less return on investment than Best Buy. In addition to that, Alcoa is 1.69 times more volatile than Best Buy Co. It trades about 0.14 of its total potential returns per unit of risk. Best Buy Co is currently generating about 0.31 per unit of volatility. If you would invest 4,824 in Best Buy Co on January 21, 2019 and sell it today you would earn a total of 1,217 from holding Best Buy Co or generate 25.23% return on investment over 30 days.
Pair Corralation between Alcoa and Best Buy
0.78
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Significant |
| Accuracy | 97.14% |
| Values | Daily Returns |
Diversification Opportunities for Alcoa and Best Buy
Poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa 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 Alcoa 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 Alcoa 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 Alcoa i.e. Alcoa and Best Buy go up and down completely randomly.
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