Correlation Analysis Between Best Buy and International Business

This module allows you to analyze existing cross correlation between Best Buy Co and International Business Machines. You can compare the effects of market volatilities on Best Buy and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and International Business.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

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 ongoing stock price disturbance, may contribute to short term losses for the investors.
International Business  
00

Risk-Adjusted Performance

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

Best Buy and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to under-perform the International Business. In addition to that, Best Buy is 1.95 times more volatile than International Business Machines. It trades about -0.03 of its total potential returns per unit of risk. International Business Machines is currently generating about -0.04 per unit of volatility. If you would invest  14,792  in International Business Machines on September 16, 2019 and sell it today you would lose (581.00)  from holding International Business Machines or give up 3.93% of portfolio value over 30 days.

Pair Corralation between Best Buy and International Business

0.65
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and International Business

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 International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Best Buy i.e. Best Buy and International Business go up and down completely randomly.
See also your portfolio center. Please also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of macroaxis ideas.


 
Search macroaxis.com