This module allows you to analyze existing cross correlation between Dollar General Corporation and Taiwan Wtd. You can compare the effects of market volatilities on Dollar General and Taiwan Wtd 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 Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
Dollar General Corp. vs. Taiwan Wtd
Allowing for the 30-days total investment horizon, Dollar General Corporation is expected to generate 1.36 times more return on investment than Taiwan Wtd. However, Dollar General is 1.36 times more volatile than Taiwan Wtd. It trades about 0.01 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.06 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 Taiwan Wtd
|Time Period||2 Months [change]|
Diversification Opportunities for Dollar General and Taiwan Wtd
Overlapping area represents the amount of risk that can be diversified away by holding Dollar General Corp. and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd 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 Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of Dollar General i.e. Dollar General and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.