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
Target Corp. vs Dollar Tree Inc
Considering 30-days investment horizon, Target Corporation is expected to generate 0.45 times more return on investment than Dollar Tree. However, Target Corporation is 2.21 times less risky than Dollar Tree. It trades about -0.29 of its potential returns per unit of risk. Dollar Tree Inc is currently generating about -0.19 per unit of risk. If you would invest 7,503 in Target Corporation on February 22, 2018 and sell it today you would lose (715.00) from holding Target Corporation or give up 9.53% of portfolio value over 30 days.
|Time Period||1 Month [change]|
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.
Over the last 30 days Target Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Dollar Tree Inc has generated negative risk-adjusted returns adding no value to investors with long positions.