Pair Correlation Between Fossil and Dollar Tree

This module allows you to analyze existing cross correlation between Fossil Group Inc and Dollar Tree Inc. You can compare the effects of market volatilities on Fossil and Dollar Tree 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 Fossil with a short position of Dollar Tree. See also your portfolio center. Please also check ongoing floating volatility patterns of Fossil and Dollar Tree.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Fossil Group Inc  vs   Dollar Tree Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Fossil is expected to generate 2.11 times less return on investment than Dollar Tree. In addition to that, Fossil is 2.88 times more volatile than Dollar Tree Inc. It trades about 0.07 of its total potential returns per unit of risk. Dollar Tree Inc is currently generating about 0.41 per unit of volatility. If you would invest  8,499  in Dollar Tree Inc on September 24, 2017 and sell it today you would earn a total of  673  from holding Dollar Tree Inc or generate 7.92% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Fossil and Dollar Tree
-0.37

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group Inc and Dollar Tree Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar Tree Inc and Fossil 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 Fossil Group Inc are associated (or correlated) with Dollar Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar Tree Inc has no effect on the direction of Fossil i.e. Fossil and Dollar Tree go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Fossil Group Inc

  
4 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Fossil Group Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.

Dollar Tree Inc

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar Tree Inc are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.