Correlation Analysis Between Best Buy and International Business

This module allows you to analyze existing cross correlation between Best Buy Co and International Business Machines Corporation. You can compare the effects of market volatilities on Best Buy and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and International Business.
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.
International Business  
25

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.

Best Buy and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy is expected to generate 1.21 times less return on investment than International Business. In addition to that, Best Buy is 1.04 times more volatile than International Business Machines Corporation. It trades about 0.3 of its total potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.38 per unit of volatility. If you would invest  10,420  in International Business Machines Corporation on January 24, 2019 and sell it today you would earn a total of  3,505  from holding International Business Machines Corporation or generate 33.64% return on investment over 30 days.

Pair Corralation between Best Buy and International Business

0.92
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and International Business

Best Buy Co Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co Inc and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Best Buy i.e. Best Buy and International Business 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
Search macroaxis.com