This module allows you to analyze existing cross correlation between Best Buy Co and Apple. You can compare the effects of market volatilities on Best Buy and Apple 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 Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and Apple.
|Horizon||30 Days Login to change|
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Apple is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.
Best Buy and Apple Volatility Contrast
Predicted Return Density
Best Buy Co Inc vs. Apple Inc
Considering 30-days investment horizon, Best Buy Co is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, Best Buy Co is 1.05 times less risky than Apple. The stock trades about -0.1 of its potential returns per unit of risk. The Apple is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 20,430 in Apple on May 26, 2019 and sell it today you would lose (572.00) from holding Apple or give up 2.8% of portfolio value over 30 days.
Pair Corralation between Best Buy and Apple
|Time Period||2 Months [change]|
Diversification Opportunities for Best Buy and Apple
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple has no effect on the direction of Best Buy i.e. Best Buy and Apple go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.