This module allows you to analyze existing cross correlation between Rite Aid Corporation and Aarons. You can compare the effects of market volatilities on Rite Aid and Aarons 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 Rite Aid with a short position of Aarons. See also your portfolio center. Please also check ongoing floating volatility patterns of Rite Aid and Aarons.
Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Aarons. In addition to that, Rite Aid is 2.25 times more volatile than Aarons. It trades about -0.19 of its total potential returns per unit of risk. Aarons is currently generating about 0.21 per unit of volatility. If you would invest 4,256 in Aarons on March 20, 2018 and sell it today you would earn a total of 565.00 from holding Aarons or generate 13.28% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid Corp. and Aarons Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Aarons and Rite Aid 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 Rite Aid Corporation are associated (or correlated) with Aarons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarons has no effect on the direction of Rite Aid i.e. Rite Aid and Aarons go up and down completely randomly.
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