Correlation Analysis Between Sprint and Best Buy

This module allows you to analyze existing cross correlation between Sprint Corporation and Best Buy Co. You can compare the effects of market volatilities on Sprint and Best Buy 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 Sprint with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and Best Buy.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Sprint  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Sprint reported solid returns over the last few months and may actually be approaching a breakup point.
Best Buy  
00

Risk-Adjusted Performance

Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in July 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Sprint and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

Sprint Corp.  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 2.38 times more return on investment than Best Buy. However, Sprint is 2.38 times more volatile than Best Buy Co. It trades about 0.15 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.14 per unit of risk. If you would invest  564.00  in Sprint Corporation on May 17, 2019 and sell it today you would earn a total of  137.00  from holding Sprint Corporation or generate 24.29% return on investment over 30 days.

Pair Corralation between Sprint and Best Buy

-0.85
Time Period2 Months [change]
DirectionNegative 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and Best Buy

Sprint Corp. diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and Sprint 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 Sprint Corporation are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of Sprint i.e. Sprint and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
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