Correlation Analysis Between International Business and Best Buy

This module allows you to analyze existing cross correlation between International Business Machines Corporation and Best Buy Co. You can compare the effects of market volatilities on International Business 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 International Business with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and Best Buy.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

International Business  
16

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.
Best Buy  
14

Risk-Adjusted Performance

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.

International Business and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business is expected to generate 1.43 times less return on investment than Best Buy. But when comparing it to its historical volatility, International Business Machines Corporation is 1.61 times less risky than Best Buy. It trades about 0.24 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 International Business and Best Buy

0.61
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Best Buy

International Business Machine diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e. International Business and Best Buy go up and down completely randomly.

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