This module allows you to analyze existing cross correlation between Dollar General Corporation and NQTH. You can compare the effects of market volatilities on Dollar General and NQTH 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 Dollar General with a short position of NQTH. See also your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and NQTH.
|Horizon||30 Days Login to change|
Predicted Return Density
Dollar General Corp. vs. NQTH
Allowing for the 30-days total investment horizon, Dollar General Corporation is expected to generate 1.34 times more return on investment than NQTH. However, Dollar General is 1.34 times more volatile than NQTH. It trades about 0.01 of its potential returns per unit of risk. NQTH is currently generating about -0.19 per unit of risk. If you would invest 13,714 in Dollar General Corporation on July 22, 2019 and sell it today you would earn a total of 7.00 from holding Dollar General Corporation or generate 0.05% return on investment over 30 days.
Pair Corralation between Dollar General and NQTH
|Time Period||2 Months [change]|
Diversification Opportunities for Dollar General and NQTH
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Dollar General Corp. and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH and Dollar General 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 Dollar General Corporation are associated (or correlated) with NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Dollar General i.e. Dollar General and NQTH go up and down completely randomly.
See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.