This module allows you to analyze existing cross correlation between International Business Machines Corporation and Best Buy Co Inc. 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
International Business Machine vs Best Buy Co Inc
Considering 30-days investment horizon, International Business Machines Corporation is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines Corporation is 4.25 times less risky than Best Buy. The stock trades about -0.08 of its potential returns per unit of risk. The Best Buy Co Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,700 in Best Buy Co Inc on October 26, 2017 and sell it today you would lose (51) from holding Best Buy Co Inc or give up 0.89% of portfolio value over 30 days.
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Very good 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 Co 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 Co has no effect on the direction of International Business i.e. International Business and Best Buy go up and down completely randomly.
Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.