Correlation Analysis Between Target and Sally Beauty

This module allows you to analyze existing cross correlation between Target Corporation and Sally Beauty Holdings Inc Na. You can compare the effects of market volatilities on Target and Sally Beauty 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 Sally Beauty. See also your portfolio center. Please also check ongoing floating volatility patterns of Target and Sally Beauty.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Target  
00

Risk-Adjusted Performance

Over the last 30 days Target Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unchanging essential indicators, Target is not utilizing all of its potentials. The latest stock price uproar, may contribute to short horizon losses for the leadership.
Sally Beauty Holdings  
00

Risk-Adjusted Performance

Over the last 30 days Sally Beauty Holdings Inc Na has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2019. The prevalent disturbance may also be a sign of long-run up-swing for the entity stockholder.

Target and Sally Beauty Volatility Contrast

 Predicted Return Density 
      Returns 

Target Corp.  vs.  Sally Beauty Holdings Inc Na

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Target Corporation is expected to generate 0.37 times more return on investment than Sally Beauty. However, Target Corporation is 2.74 times less risky than Sally Beauty. It trades about -0.03 of its potential returns per unit of risk. Sally Beauty Holdings Inc Na is currently generating about -0.1 per unit of risk. If you would invest  8,616  in Target Corporation on July 19, 2019 and sell it today you would lose (195.00)  from holding Target Corporation or give up 2.26% of portfolio value over 30 days.

Pair Corralation between Target and Sally Beauty

-0.41
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Target and Sally Beauty

Target Corp. diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and Sally Beauty Holdings Inc Na in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sally Beauty Holdings 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 Sally Beauty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sally Beauty Holdings has no effect on the direction of Target i.e. Target and Sally Beauty 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.


 
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