This module allows you to analyze existing cross correlation between Alcoa Inc and Best Buy Co Inc. You can compare the effects of market volatilities on Alcoa 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 Alcoa with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Alcoa
and Best Buy
Alcoa Inc. vs Best Buy Co. Inc.
Allowing for the 30-days total investment horizon, Alcoa is expected to generate 3.49 times less return on investment than Best Buy. In addition to that, Alcoa is 3.68 times more volatile than Best Buy Co Inc. It trades about 0.03 of its total potential returns per unit of risk. Best Buy Co Inc is currently generating about 0.33 per unit of volatility. If you would invest 4,859 in Best Buy Co Inc on March 30, 2017 and sell it today you would earn a total of 322.00 from holding Best Buy Co Inc or generate 6.63% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Alcoa 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 Alcoa 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 Alcoa 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 Alcoa i.e. Alcoa and Best Buy go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Inc are ranked lower than 1 (%) 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 23 (%) of all global equities and portfolios over the last 30 days.