Correlation Analysis Between Best Buy and BJs Wholesale

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

Best Buy  
00

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. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
BJs Wholesale Club  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BJs Wholesale Club Holdings I are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly unsteady technical and fundamental indicators, BJs Wholesale may actually be approaching a critical reversion point that can send shares even higher in October 2019.

Best Buy and BJs Wholesale Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  BJs Wholesale Club Holdings I

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy is expected to generate 10.99 times less return on investment than BJs Wholesale. But when comparing it to its historical volatility, Best Buy Co is 1.13 times less risky than BJs Wholesale. It trades about 0.0 of its potential returns per unit of risk. BJs Wholesale Club Holdings I is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,511  in BJs Wholesale Club Holdings I on August 21, 2019 and sell it today you would earn a total of  125.00  from holding BJs Wholesale Club Holdings I or generate 4.98% return on investment over 30 days.

Pair Corralation between Best Buy and BJs Wholesale

-0.29
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy96.92%
ValuesDaily Returns

Diversification Opportunities for Best Buy and BJs Wholesale

Best Buy Co Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and BJs Wholesale Club Holdings I in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club 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 BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of Best Buy i.e. Best Buy and BJs Wholesale go up and down completely randomly.

BJs Wholesale Club Holdings I

Pair trading matchups for BJs Wholesale

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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