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

Pair Volatility

Considering 30-days investment horizon, Target Corporation is expected to generate 0.89 times more return on investment than Dollar General. However, Target Corporation is 1.12 times less risky than Dollar General. It trades about 0.01 of its potential returns per unit of risk. Dollar General Corporation is currently generating about -0.19 per unit of risk. If you would invest  7,541  in Target Corporation on January 26, 2018 and sell it today you would lose (38.00)  from holding Target Corporation or give up 0.5% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Target and Dollar General
0.71

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy3.8%
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

  
0 

Risk-Adjusted Performance

Over the last 30 days Target Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Dollar General

  
0 

Risk-Adjusted Performance

Over the last 30 days Dollar General Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.