This module allows you to analyze existing cross correlation between Best Buy Co Inc and Sprint Corporation. You can compare the effects of market volatilities on Best Buy and Sprint 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 Sprint. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
Best Buy Co. Inc. vs Sprint Corp.
Considering 30-days investment horizon, Best Buy Co Inc is expected to generate 0.72 times more return on investment than Sprint. However, Best Buy Co Inc is 1.39 times less risky than Sprint. It trades about 0.33 of its potential returns per unit of risk. Sprint Corporation is currently generating about 0.22 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.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co. Inc. and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Best Buy i.e. Best Buy and Sprint go up and down completely randomly.
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.
Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.