Correlation Analysis Between Alcoa and Best Buy |
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.
| Time Horizon | 30 Days Login to change |
| Symbols | vs |
Alcoa Corp. vs. Best Buy Co Inc
Pair Volatility
Allowing for the 30-days total investment horizon, Alcoa Corporation is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, Alcoa Corporation is 1.07 times less risky than Best Buy. The stock trades about -0.14 of its potential returns per unit of risk. The Best Buy Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,595 in Best Buy Co on May 23, 2018 and sell it today you would earn a total of 20.00 from holding Best Buy Co or generate 0.26% return on investment over 30 days.
Pair Corralation between Alcoa and Best Buy
-0.44
| Time Period | 1 Month [change] |
| Direction | Negative |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification
Very good 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 Co 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 Co has no effect on the direction of Alcoa i.e. Alcoa and Best Buy go up and down completely randomly.
Comparative Volatility
| Alcoa |
0 Risk-Adjusted Performance
Risk-Adjusted PerformanceOver the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Alcoa Corporation
Pair trading matchups for Alcoa
| Best Buy Co |
1 Risk-Adjusted Performance
Risk-Adjusted PerformanceCompared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Best Buy Co
Pair trading matchups for Best Buy
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