Correlation Analysis Between Best Buy and Lands End

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

Comparative Performance

Best Buy  

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 current stock price disturbance, may contribute to short term losses for the investors.
Lands End  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Lands End are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Lands End is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Best Buy and Lands End Volatility Contrast

 Predicted Return Density 

Best Buy Co Inc  vs.  Lands End Inc

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to under-perform the Lands End. But the stock apears to be less risky and, when comparing its historical volatility, Best Buy Co is 2.13 times less risky than Lands End. The stock trades about 0.0 of its potential returns per unit of risk. The Lands End is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,214  in Lands End on August 22, 2019 and sell it today you would lose (33.00)  from holding Lands End or give up 2.72% of portfolio value over 30 days.

Pair Corralation between Best Buy and Lands End

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Best Buy and Lands End

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 Lands End Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lands End 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 Lands End. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lands End has no effect on the direction of Best Buy i.e. Best Buy and Lands End 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.