This module allows you to analyze existing cross correlation between Apple and Best Buy Co. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Best Buy.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Apple and Best Buy Volatility Contrast
Predicted Return Density
Apple Inc vs. Best Buy Co Inc
Given the investment horizon of 30 days, Apple is expected to generate 0.65 times more return on investment than Best Buy. However, Apple is 1.53 times less risky than Best Buy. It trades about 0.14 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.04 per unit of risk. If you would invest 20,257 in Apple on September 15, 2019 and sell it today you would earn a total of 3,275 from holding Apple or generate 16.17% return on investment over 30 days.
Pair Corralation between Apple and Best Buy
|Time Period||3 Months [change]|
Diversification Opportunities for Apple and Best Buy
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple 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 Apple 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 Apple 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 Apple i.e. Apple and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.