Correlation Analysis Between Apple and Best Buy

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
Symbolsvs
Compare Efficiency

Comparative Performance

Apple  
0

Risk-Adjusted Performance

Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions.
Best Buy  
0

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.

Apple and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.9 times more return on investment than Best Buy. However, Apple is 1.12 times less risky than Best Buy. It trades about -0.24 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.22 per unit of risk. If you would invest  22,211  in Apple on November 14, 2018 and sell it today you would lose (5,116)  from holding Apple or give up 23.03% of portfolio value over 30 days.

Pair Corralation between Apple and Best Buy

0.91
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and Best Buy

Apple Inc diversification synergy

Almost no 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.

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See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.


 
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