This module allows you to analyze existing cross correlation between CVS Health Corporation and Best Buy Co Inc. You can compare the effects of market volatilities on CVS Health 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 CVS Health with a short position of Best Buy. See also your portfolio center
. Please also check ongoing floating volatility patterns of CVS Health
and Best Buy
CVS Health Corp. vs Best Buy Co Inc
Considering 30-days investment horizon, CVS Health Corporation is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, CVS Health Corporation is 1.14 times less risky than Best Buy. The stock trades about -0.21 of its potential returns per unit of risk. The Best Buy Co Inc is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 7,469 in Best Buy Co Inc on January 18, 2018 and sell it today you would lose (151.00) from holding Best Buy Co Inc or give up 2.02% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding CVS Health 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 Co and CVS Health 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 CVS Health 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 Co has no effect on the direction of CVS Health i.e. CVS Health and Best Buy go up and down completely randomly.
Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Best Buy Co Inc has generated negative risk-adjusted returns adding no value to investors with long positions.