This module allows you to analyze existing cross correlation between Best Buy Co and Sprint Corporation. You can compare the effects of market volatilities on Best Buy and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Sprint.
|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 ongoing stock price disturbance, may contribute to short term losses for the investors.
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
Best Buy and Sprint Volatility Contrast
Predicted Return Density
Best Buy Co Inc vs. Sprint Corp.
Considering 30-days investment horizon, Best Buy Co is expected to generate 1.25 times more return on investment than Sprint. However, Best Buy is 1.25 times more volatile than Sprint Corporation. It trades about -0.03 of its potential returns per unit of risk. Sprint Corporation is currently generating about -0.04 per unit of risk. If you would invest 7,384 in Best Buy Co on September 16, 2019 and sell it today you would lose (543.00) from holding Best Buy Co or give up 7.35% of portfolio value over 30 days.
Pair Corralation between Best Buy and Sprint
|Time Period||3 Months [change]|
Diversification Opportunities for Best Buy and Sprint
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Best Buy i.e. Best Buy and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.