Pair Correlation Between Rite Aid and Aarons

This module allows you to analyze existing cross correlation between Rite Aid Corporation and Aarons Inc. 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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Rite Aid Corp.  vs   Aarons Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Aarons. In addition to that, Rite Aid is 2.42 times more volatile than Aarons Inc. It trades about -0.3 of its total potential returns per unit of risk. Aarons Inc is currently generating about 0.19 per unit of volatility. If you would invest  3,942  in Aarons Inc on September 23, 2017 and sell it today you would earn a total of  273  from holding Aarons Inc or generate 6.93% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Rite Aid and Aarons
-0.54

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent diversification

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 Inc 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 Inc has no effect on the direction of Rite Aid i.e. Rite Aid and Aarons go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Rite Aid

  
0 

Risk-Adjusted Performance

Over the last 30 days Rite Aid Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Aarons Inc

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Aarons Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.