This module allows you to analyze existing cross correlation between Best Buy Co and International Business Machines Corporation. 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|
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.
Over the last 30 days International Business Machines Corporation 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
Best Buy Co Inc vs. International Business Machine
Considering 30-days investment horizon, Best Buy Co is expected to generate 1.14 times more return on investment than International Business. However, Best Buy is 1.14 times more volatile than International Business Machines Corporation. It trades about 0.0 of its potential returns per unit of risk. International Business Machines Corporation is currently generating about -0.03 per unit of risk. If you would invest 7,011 in Best Buy Co on April 21, 2019 and sell it today you would lose (27.00) from holding Best Buy Co or give up 0.39% of portfolio value over 30 days.
Pair Corralation between Best Buy and International Business
|Time Period||2 Months [change]|
Diversification Opportunities for Best Buy and International Business
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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.