This module allows you to analyze existing cross correlation between Citigroup Inc and Best Buy Co Inc. You can compare the effects of market volatilities on Citigroup and Best Buy 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 Citigroup with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Citigroup
and Best Buy
Citigroup Inc vs Best Buy Co Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 3.92 times less return on investment than Best Buy. But when comparing it to its historical volatility, Citigroup Inc is 1.76 times less risky than Best Buy. It trades about 0.26 of its potential returns per unit of risk. Best Buy Co Inc is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 6,711 in Best Buy Co Inc on December 22, 2017 and sell it today you would earn a total of 975 from holding Best Buy Co Inc or generate 14.53% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy Co and Citigroup 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 Citigroup Inc are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy Co has no effect on the direction of Citigroup i.e. Citigroup and Best Buy go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 38 (%) of all global equities and portfolios over the last 30 days.