Pair Correlation Between Rite Aid and Dollar General

This module allows you to analyze existing cross correlation between Rite Aid Corporation and Dollar General Corporation. You can compare the effects of market volatilities on Rite Aid and Dollar General 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 Dollar General. See also your portfolio center. Please also check ongoing floating volatility patterns of Rite Aid and Dollar General.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Rite Aid Corp.  vs   Dollar General Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Dollar General. In addition to that, Rite Aid is 4.46 times more volatile than Dollar General Corporation. It trades about -0.35 of its total potential returns per unit of risk. Dollar General Corporation is currently generating about 0.27 per unit of volatility. If you would invest  7,728  in Dollar General Corporation on September 16, 2017 and sell it today you would earn a total of  484  from holding Dollar General Corporation or generate 6.26% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Rite Aid and Dollar General
-0.86

Parameters

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

Diversification

Pay attention

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

Dollar General

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dollar General Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.