Pair Correlation Between Target and Dollar Tree

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

Pair Volatility

Considering 30-days investment horizon, Target Corporation is expected to generate 1.83 times more return on investment than Dollar Tree. However, Target is 1.83 times more volatile than Dollar Tree Inc. It trades about 0.25 of its potential returns per unit of risk. Dollar Tree Inc is currently generating about 0.35 per unit of risk. If you would invest  5,416  in Target Corporation on November 15, 2017 and sell it today you would earn a total of  854  from holding Target Corporation or generate 15.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Target and Dollar Tree
0.8

Parameters

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

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. 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 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 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 Target i.e. Target and Dollar Tree go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Target

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

Dollar Tree Inc

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar Tree Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.