Target Risk Analysis

Target Corporation -- USA Stock  

USD 60.36  0.21  0.35%

We consider Target not too risky. Target owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0742 which indicates Target had 0.0742% of return per unit of risk over the last 1 month. Our philosophy towards measuring volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Target Corporation which you can use to evaluate future volatility of the company. Please validate Target Semi Deviation of 1.17, Coefficient Of Variation of 5738.16 and Risk Adjusted Performance of 0.0122 to confirm if risk estimate we provide are consistent with the epected return of 0.092%.
Investment Horizon     30 Days    Login   to change

Target Market Sensitivity

As returns on market increase, Target returns are expected to increase less than the market. However during bear market, the loss on holding Target will be expected to be smaller as well.
One Month Beta |Analyze Target Demand Trend
Check current 30 days Target correlation with market (DOW)
β = 0.4174
Target Small BetaTarget Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, Target has beta of 0.4174 . This entails as returns on market go up, Target average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Target Corporation will be expected to be much smaller as well. Additionally, Target Corporation has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of Target is 1348.21. The daily returns are destributed with a variance of 1.54 and standard deviation of 1.24. The mean deviation of Target Corporation is currently at 0.9. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
=(0.0419) 
βBeta against DOW= 0.42 
σ
Overall volatility
= 1.24 
 IrInformation ratio =(0.0932) 

Actual Return Volatility

Target Corporation has volatility of 1.2403% on return distribution over 30 days investment horizon. DOW inherits 0.2342% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Target Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

30 Days Economic Sensitivity

Slowly supersedes market

Total Debt

Target Total Debt History

Total Debt

Largest Trends

Target Largest Period Trend

Investment Outlook

Target Investment Opportunity
Target Corporation has a volatility of 1.24 and is 5.39 times more volatile than DOW. 11% of all equities and portfolios are less risky than Target. Compared to the overall equity markets, volatility of historical daily returns of Target Corporation is lower than 11 (%) of all global equities and portfolios over the last 30 days. Use Target Corporation to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Target to be traded at $63.38 in 30 days. As returns on market increase, Target returns are expected to increase less than the market. However during bear market, the loss on holding Target will be expected to be smaller as well.

Target correlation with market

Significant diversification
Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and equity matching DJI index in the same portfolio.