Pair Correlation Between Best Buy and CVS Health

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

Pair Volatility

Considering 30-days investment horizon, Best Buy is expected to generate 1.14 times less return on investment than CVS Health. In addition to that, Best Buy is 1.45 times more volatile than CVS Health Corporation. It trades about 0.06 of its total potential returns per unit of risk. CVS Health Corporation is currently generating about 0.1 per unit of volatility. If you would invest  7,949  in CVS Health Corporation on January 25, 2017 and sell it today you would earn a total of  199.00  from holding CVS Health Corporation or generate 2.5% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Best Buy and CVS Health
0.58

Parameters

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

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed   Returns 

Best Buy Co

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.

CVS Health

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.