This module allows you to analyze existing cross correlation between Chevron Corporation and Best Buy Co. You can compare the effects of market volatilities on Chevron 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 Chevron with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Chevron
and Best Buy
Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 19 (%) 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 are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.
Chevron and Best Buy Volatility Contrast
Chevron Corp. vs. Best Buy Co Inc
Considering 30-days investment horizon, Chevron is expected to generate 1.82 times less return on investment than Best Buy. But when comparing it to its historical volatility, Chevron Corporation is 2.47 times less risky than Best Buy. It trades about 0.29 of its potential returns per unit of risk. Best Buy Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,777 in Best Buy Co on February 20, 2019 and sell it today you would earn a total of 1,279 from holding Best Buy Co or generate 22.14% return on investment over 30 days.
Pair Corralation between Chevron and Best Buy
|Time Period||2 Months [change]|
Diversification Opportunities for Chevron and Best Buy
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and Chevron 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 Chevron Corporation 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 has no effect on the direction of Chevron i.e. Chevron and Best Buy go up and down completely randomly.
See also your portfolio center
. Please also try My Watchlist Analysis
module to analyze my current watchlist and to refresh optimization strategy. macroaxis watchlist is based on self-learning algorithm to remember stocks you like.