This module allows you to analyze existing cross correlation between Citigroup and Best Buy Co. You can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Citigroup
and Best Buy
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.
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.
Citigroup and Best Buy Volatility Contrast
Citigroup Inc vs. Best Buy Co Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 0.91 times more return on investment than Best Buy. However, Citigroup is 1.1 times less risky than Best Buy. It trades about 0.39 of its potential returns per unit of risk. Best Buy Co is currently generating about 0.3 per unit of risk. If you would invest 4,828 in Citigroup on January 24, 2019 and sell it today you would earn a total of 1,586 from holding Citigroup or generate 32.85% return on investment over 30 days.
Pair Corralation between Citigroup and Best Buy
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Diversification Opportunities for Citigroup and Best Buy
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc 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 Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and Best Buy go up and down completely randomly.