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 fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short term losses for the investors.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2019.
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. In addition to that, Best Buy is 1.49 times more volatile than Apple. It trades about -0.01 of its total potential returns per unit of risk. Apple is currently generating about 0.08 per unit of volatility. If you would invest 19,946 in Apple on July 20, 2019 and sell it today you would earn a total of 1,089 from holding Apple or generate 5.46% return on investment over 30 days.
Pair Corralation between Best Buy and Apple
|Time Period||2 Months [change]|
Diversification Opportunities for Best Buy and Apple
Very weak 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.