This module allows you to analyze existing cross correlation between Target Corporation and Dollar General Corporation. You can compare the effects of market volatilities on Target and Dollar General 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 Dollar General. See also your portfolio center
. Please also check ongoing floating volatility patterns of Target
and Dollar General
Target Corp. vs Dollar General Corp.
Considering 30-days investment horizon, Target is expected to generate 3.22 times less return on investment than Dollar General. In addition to that, Target is 1.16 times more volatile than Dollar General Corporation. It trades about 0.08 of its total potential returns per unit of risk. Dollar General Corporation is currently generating about 0.29 per unit of volatility. If you would invest 7,755 in Dollar General Corporation on September 20, 2017 and sell it today you would earn a total of 536 from holding Dollar General Corporation or generate 6.91% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and Dollar General Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Target i.e. Target and Dollar General go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Dollar General Corporation are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.