This module allows you to analyze existing cross correlation between Best Buy Co and The Home Depot. You can compare the effects of market volatilities on Best Buy and Home Depot 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 Home Depot. See also your portfolio center
. Please also check ongoing floating volatility patterns of Best Buy
and Home Depot
Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in The Home Depot are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.
Best Buy and Home Depot Volatility Contrast
Best Buy Co Inc vs. The Home Depot Inc
Considering 30-days investment horizon, Best Buy Co is expected to generate 1.21 times more return on investment than Home Depot. However, Best Buy is 1.21 times more volatile than The Home Depot. It trades about 0.28 of its potential returns per unit of risk. The Home Depot is currently generating about 0.29 per unit of risk. If you would invest 4,824 in Best Buy Co on January 23, 2019 and sell it today you would earn a total of 1,214 from holding Best Buy Co or generate 25.17% return on investment over 30 days.
Pair Corralation between Best Buy and Home Depot
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Diversification Opportunities for Best Buy and Home Depot
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and The Home Depot Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Home Depot 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 Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of Best Buy i.e. Best Buy and Home Depot go up and down completely randomly.