Correlation Analysis Between Best Buy and Alcoa

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
Symbolsvs
Compare Efficiency

Comparative Performance

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.
Alcoa  
0

Risk-Adjusted Performance

Over the last 30 days Alcoa Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Best Buy and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 0.59 times more return on investment than Alcoa. However, Best Buy Co is 1.69 times less risky than Alcoa. It trades about 0.31 of its potential returns per unit of risk. Alcoa Corporation is currently generating about 0.14 per unit of risk. If you would invest  4,824  in Best Buy Co on January 21, 2019 and sell it today you would earn a total of  1,221  from holding Best Buy Co or generate 25.31% return on investment over 30 days.

Pair Corralation between Best Buy and Alcoa

0.78
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy97.14%
ValuesDaily Returns

Diversification Opportunities for Best Buy and Alcoa

Best Buy Co Inc diversification synergy

Poor diversification

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.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  

Alcoa Corporation

Pair trading matchups for Alcoa

See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.


 
Search macroaxis.com