This module allows you to analyze existing cross correlation between Best Buy Co Inc and Apple Inc. 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.
Considering 30-days investment horizon, Best Buy is expected to generate 5.08 times less return on investment than Apple. In addition to that, Best Buy is 1.32 times more volatile than Apple Inc. It trades about 0.06 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.4 per unit of volatility. If you would invest 12,185 in Apple Inc on January 25, 2017 and sell it today you would earn a total of 1,481 from holding Apple Inc or generate 12.15% return on investment over 30 days.
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 Inc 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 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 Inc has no effect on the direction of Best Buy i.e. Best Buy and Apple go up and down completely randomly.