Correlation Between Vestas Wind and Target

By analyzing existing cross correlation between Vestas Wind Systems and Target you can compare the effects of market volatilities on Vestas Wind and Target 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 Vestas Wind with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and Target.

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Can any of the company-specific risk be diversified away by investing in both Vestas Wind and Target at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Vestas Wind and Target into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Vestas Wind and Target

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Correlation
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<div class='circular--portrait-small' style='font-weight: 700;background:#FF0F00;color: #FFFFF0;font-size:0.9em;padding-top: 12px;;'>TGT</div>

Pay attention - limited upside

The 3 months correlation between Vestas and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems AS and Target Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Target and Vestas Wind 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 Vestas Wind Systems are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Vestas Wind i.e. Vestas Wind and Target go up and down completely randomly.

Pair Corralation between Vestas Wind and Target

If you would invest  10,906  in Target on April 30, 2020 and sell it today you would earn a total of  1,327  from holding Target or generate 12.17% return on investment over 30 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Vestas Wind Systems AS  vs.  Target Corp.

 Performance (%) 
      Timeline 
Vestas Wind Systems 
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Vestas Wind Risk-Adjusted Performance

Over the last 30 days Vestas Wind Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough quite persistent forward indicators, Vestas Wind is not utilizing all of its potentials. The existing stock price mess, may contribute to short term losses for the partners.
Target 
44

Target Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unfluctuating essential indicators, Target unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vestas Wind and Target Volatility Contrast

Vestas Wind Systems

Pair trading matchups for Vestas Wind

Check out your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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