This module allows you to analyze existing cross correlation between Target Corporation and Aarons Inc. You can compare the effects of market volatilities on Target and Aarons 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 Target with a short position of Aarons. See also your portfolio center
. Please also check ongoing floating volatility patterns of Target
Target Corp. vs Aarons Inc
Considering 30-days investment horizon, Target is expected to generate 1.68 times less return on investment than Aarons. But when comparing it to its historical volatility, Target Corporation is 1.35 times less risky than Aarons. It trades about 0.22 of its potential returns per unit of risk. Aarons Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,883 in Aarons Inc on September 21, 2017 and sell it today you would earn a total of 391 from holding Aarons Inc or generate 10.07% return on investment over 30 days.
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Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and Aarons Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Aarons Inc and Target 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 Target Corporation are associated (or correlated) with Aarons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarons Inc has no effect on the direction of Target i.e. Target and Aarons go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Aarons Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.