Correlation Analysis Between Best Buy and CVS Health

This module allows you to analyze existing cross correlation between Best Buy Co 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.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

Best Buy  
20

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.
CVS Health  
0

Risk-Adjusted Performance

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

Best Buy and CVS Health Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  CVS Health Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 0.96 times more return on investment than CVS Health. However, Best Buy Co is 1.04 times less risky than CVS Health. It trades about 0.3 of its potential returns per unit of risk. CVS Health Corporation is currently generating about 0.01 per unit of risk. If you would invest  4,762  in Best Buy Co on January 24, 2019 and sell it today you would earn a total of  1,282  from holding Best Buy Co or generate 26.92% return on investment over 30 days.

Pair Corralation between Best Buy and CVS Health

0.27
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and CVS Health

Best Buy Co Inc diversification synergy

Modest 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 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.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
Search macroaxis.com