This module allows you to analyze existing cross correlation between Best Buy Co and Alcoa Corporation. You can compare the effects of market volatilities on Best Buy and Alcoa 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 Best Buy with a short position of Alcoa. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Alcoa.
|Horizon||30 Days Login to change|
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.
Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
Best Buy and Alcoa Volatility Contrast
Predicted Return Density
Best Buy Co Inc vs. Alcoa Corp.
Considering 30-days investment horizon, Best Buy Co is expected to generate 0.9 times more return on investment than Alcoa. However, Best Buy Co is 1.11 times less risky than Alcoa. It trades about -0.03 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.09 per unit of risk. If you would invest 7,384 in Best Buy Co on September 16, 2019 and sell it today you would lose (543.00) from holding Best Buy Co or give up 7.35% of portfolio value over 30 days.
Pair Corralation between Best Buy and Alcoa
|Time Period||3 Months [change]|
Diversification Opportunities for Best Buy and Alcoa
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Alcoa Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa and Best Buy 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 Best Buy Co are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa has no effect on the direction of Best Buy i.e. Best Buy and Alcoa go up and down completely randomly.
See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.