Correlation Analysis Between Five Below and Best Buy

This module allows you to analyze existing cross correlation between Five Below and Best Buy Co. You can compare the effects of market volatilities on Five Below 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 Five Below with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of Five Below and Best Buy.
Horizon     30 Days    Login   to change
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Comparative Performance

Five Below  
00

Risk-Adjusted Performance

Over the last 30 days Five Below has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Five Below is not utilizing all of its potentials. The prevailing stock price tumult, may contribute to shorter-term losses for the shareholders.
Best Buy  
1313

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. Inspite fairly inconsistent basic indicators, Best Buy showed solid returns over the last few months and may actually be approaching a breakup point.

Five Below and Best Buy Volatility Contrast

 Predicted Return Density 
      Returns 

Five Below Inc  vs.  Best Buy Co Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Five Below is expected to under-perform the Best Buy. But the stock apears to be less risky and, when comparing its historical volatility, Five Below is 1.06 times less risky than Best Buy. The stock trades about -0.05 of its potential returns per unit of risk. The Best Buy Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  6,754  in Best Buy Co on November 12, 2019 and sell it today you would earn a total of  1,715  from holding Best Buy Co or generate 25.39% return on investment over 30 days.

Pair Corralation between Five Below and Best Buy

-0.59
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Five Below and Best Buy

Five Below Inc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Five Below 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 Five Below 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 Five Below 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 Five Below i.e. Five Below and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.


 
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