Pair Correlation Between Target and Dollar General

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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Target Corp.  vs   Dollar General Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Target is expected to generate 2.26 times less return on investment than Dollar General. In addition to that, Target is 2.58 times more volatile than Dollar General Corporation. It trades about 0.06 of its total potential returns per unit of risk. Dollar General Corporation is currently generating about 0.33 per unit of volatility. If you would invest  8,355  in Dollar General Corporation on November 13, 2017 and sell it today you would earn a total of  859  from holding Dollar General Corporation or generate 10.28% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Target and Dollar General
0.71

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Target

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

Dollar General

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar General Corporation are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.