Pair Correlation Between Best Buy and American Airlines

This module allows you to analyze existing cross correlation between Best Buy Co Inc and American Airlines Group Inc. You can compare the effects of market volatilities on Best Buy and American Airlines 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 Best Buy with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and American Airlines.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Best Buy Co. Inc.  vs   American Airlines Group Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 0.44 times more return on investment than American Airlines. However, Best Buy Co Inc is 2.28 times less risky than American Airlines. It trades about 0.33 of its potential returns per unit of risk. American Airlines Group Inc is currently generating about 0.01 per unit of risk. 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.

Correlation Coefficient

Pair Corralation between Best Buy and American Airlines
0.69

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co. Inc. and American Airlines Group Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group and Best Buy 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 Best Buy Co Inc are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines Group has no effect on the direction of Best Buy i.e. Best Buy and American Airlines go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

Best Buy Co

  
23 

Risk-Adjusted Performance

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.

American Airlines Group

  
0 

Risk-Adjusted Performance

Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.