Correlation Analysis Between Dollar Tree and Dollar General

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

Dollar Tree  
00

Risk-Adjusted Performance

Over the last 30 days Dollar Tree has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Dollar Tree is not utilizing all of its potentials. The recent stock price agitation, may contribute to short term losses for the management.
Dollar General  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar General Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In spite of rather unfluctuating fundamental drivers, Dollar General exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dollar Tree and Dollar General Volatility Contrast

 Predicted Return Density 
      Returns 

Dollar Tree Inc  vs.  Dollar General Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Dollar Tree is expected to generate 26.8 times less return on investment than Dollar General. In addition to that, Dollar Tree is 1.02 times more volatile than Dollar General Corporation. It trades about 0.01 of its total potential returns per unit of risk. Dollar General Corporation is currently generating about 0.14 per unit of volatility. If you would invest  13,682  in Dollar General Corporation on August 21, 2019 and sell it today you would earn a total of  2,149  from holding Dollar General Corporation or generate 15.71% return on investment over 30 days.

Pair Corralation between Dollar Tree and Dollar General

0.42
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Dollar Tree and Dollar General

Dollar Tree Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Dollar Tree Inc and Dollar General Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar General and Dollar Tree 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 Tree are associated (or correlated) with Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Dollar Tree i.e. Dollar Tree and Dollar General go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.


 
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