Correlation Analysis Between Best Buy and American Airlines

This module allows you to analyze existing cross correlation between Best Buy Co and American Airlines Group. You can compare the effects of market volatilities on Best Buy and American Airlines 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 American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and American Airlines.
Horizon     30 Days    Login   to change
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Comparative Performance

Best Buy  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Inspite fairly inconsistent basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

Best Buy and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 1.04 times more return on investment than American Airlines. However, Best Buy is 1.04 times more volatile than American Airlines Group. It trades about 0.18 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.0 per unit of risk. If you would invest  6,891  in Best Buy Co on November 13, 2019 and sell it today you would earn a total of  1,588  from holding Best Buy Co or generate 23.04% return on investment over 30 days.

Pair Corralation between Best Buy and American Airlines

0.25
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and American Airlines

Best Buy Co Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of Best Buy i.e. Best Buy and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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