Target Volatility

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;padding-top: 38px;;'>TGT</div>
TGT -- USA Stock  

Fiscal Quarter End: 31st of July 2020  

Target appears to be very steady, given 3 months investment horizon. Target owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.11, which indicates the firm had 0.11% of return per unit of risk over the last 3 months. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Target, which you can use to evaluate future volatility of the company. Please operate Target coefficient of variation of 646.33, risk adjusted performance of 0.2823, and semi deviation of 1.35 to confirm if our risk estimates are consistent with your expectations.

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Target Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Target daily returns, and it is calculated using variance and standard deviation. We also use Target's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Target volatility.

  Target Interest Expense

90 Days Market Risk

Very steady

Chance of Distress

90 Days Economic Sensitivity

Follows the market closely

Target Market Sensitivity And Downside Risk

Target beta coefficient measures the volatility of Target stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Target stock's returns against your selected market. In other words, Target's beta of -0.0459 provides an investor with an approximation of how much risk Target stock can potentially add to one of your existing portfolios. Let's try to break down what Target's beta means in this case. As returns on the market increase, returns on owning Target are expected to decrease at a much lower rate. During the bear market, Target is likely to outperform the market.
3 Months Beta |Analyze Target Demand Trend
Check current 30 days Target correlation with market (DOW)
β

Current Target Beta Coefficient

 = 

Target Central Daily Price Deviations

It is essential to understand the difference between upside risk (as represented by Target's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Target stock's daily returns or price. Since the actual investment returns on holding a position in Target stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Target.

Target Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Target Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Target Projected Return Density Against Market

Considering the 30-days investment horizon, Target has a beta of -0.0459 . This usually implies as returns on benchmark increase, returns on holding Target are expected to decrease at a much lower rate. During the bear market, however, Target is likely to outperform the market. Moreover, Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Target or Power Stocks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Target stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Target stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. The company has an alpha of 0.3048, implying that it can generate a 0.3 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Target Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Target or Power Stocks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Target stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Target stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 30-days investment horizon, the coefficient of variation of Target is 908.33. The daily returns are destributed with a variance of 3.51 and standard deviation of 1.87. The mean deviation of Target is currently at 1.52. For similar time horizon, the selected benchmark (DOW) has volatility of 1.82
α
Alpha over DOW
=0.30
β
Beta against DOW=-0.05
σ
Overall volatility
=1.87
Ir
Information ratio =0.07

Target Return Volatility

Target historical daily return volatility represents how much Target stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.8723% on return distribution over 30 days investment horizon. By contrast, DOW inherits 1.8194% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About Target Volatility

Volatility is a rate at which the price of Target or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Target may increase or decrease. In other words, similar to Target's beta indicator, it measures the risk of Target and helps estimate the fluctuations that may happen in a short period of time. So if prices of Target fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Last ReportedProjected for 2020
Market Capitalization42.2 B38.9 B
Target Corporation operates as a general merchandise retailer in the United States. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target operates under Discount Stores classification in the United States and is traded on BATS Exchange. It employs 368000 people.

Target Investment Opportunity

Target has a volatility of 1.87 and is 1.03 times more volatile than DOW. 16  of all equities and portfolios are less risky than Target. Compared to the overall equity markets, volatility of historical daily returns of Target is lower than 16 () of all global equities and portfolios over the last 30 days. Use Target to enhance returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Target to be traded at $123.81 in 30 days. . Let's try to break down what Target's beta means in this case. As returns on the market increase, returns on owning Target are expected to decrease at a much lower rate. During the bear market, Target is likely to outperform the market.

Target correlation with market

correlation synergy
Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and equity matching DJI index in the same portfolio.

Target Additional Risk Indicators

The analysis of various secondary risk indicators of Target is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Target investment, and either accepting that risk or mitigating it. Along with some common measures of Target stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging your existing portfolio. Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing the like to determine which investment holds the most risk.
Risk Adjusted Performance0.2823
Market Risk Adjusted Performance(6.47)
Mean Deviation1.58
Semi Deviation1.35
Downside Deviation1.62
Coefficient Of Variation646.33
Standard Deviation1.99

Target Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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Additionally, take a look at World Market Map. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page