Pair Correlation Between Best Buy and Chevron

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

Pair Volatility

Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 1.08 times more return on investment than Chevron. However, Best Buy is 1.08 times more volatile than Chevron Corporation. It trades about 0.33 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.05 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 Chevron
-0.58

Parameters

Time Period1 Month [change]
DirectionNegative BBY Moved Down vs CVX
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent diversification

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

Chevron

  
0 

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.