This module allows you to analyze existing cross correlation between Sprint Corporation and Best Buy Co. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of Best Buy. See also
your portfolio center. Please also check ongoing floating volatility patterns of
Sprint and
Best Buy.
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Horizon
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30 Days
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to change
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Comparative Performance
Risk-Adjusted Performance
Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.
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.
Sprint and Best Buy Volatility Contrast
Sprint Corp. vs. Best Buy Co Inc
Pair Volatility
Taking into account the 30 trading days horizon, Sprint is expected to generate 1.37 times less return on investment than Best Buy. In addition to that, Sprint is 1.1 times more volatile than Best Buy Co. It trades about 0.2 of its total potential returns per unit of risk. Best Buy Co is currently generating about 0.3 per unit of volatility. If you would invest 4,762 in Best Buy Co on January 24, 2019 and sell it today you would earn a total of 1,282 from holding Best Buy Co or generate 26.92% return on investment over 30 days.
Pair Corralation between Sprint and Best Buy
0.63
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification Opportunities for Sprint and Best Buy
Poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Sprint 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 and Sprint 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 Sprint 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 has no effect on the direction of Sprint i.e. Sprint and Best Buy go up and down completely randomly.
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