This module allows you to analyze existing cross correlation between Rite Aid Corporation and Dollar Tree Inc. You can compare the effects of market volatilities on Rite Aid and Dollar Tree 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 Tree. See also your portfolio center
. Please also check ongoing floating volatility patterns of Rite Aid
and Dollar Tree
Rite Aid Corp. vs Dollar Tree Inc
Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Dollar Tree. But the stock apears to be less risky and, when comparing its historical volatility, Rite Aid Corporation is 1.08 times less risky than Dollar Tree. The stock trades about -0.46 of its potential returns per unit of risk. The Dollar Tree Inc is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 10,681 in Dollar Tree Inc on February 20, 2018 and sell it today you would lose (1,209) from holding Dollar Tree Inc or give up 11.32% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid Corp. and Dollar Tree Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar Tree 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 Dollar Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar Tree Inc has no effect on the direction of Rite Aid i.e. Rite Aid and Dollar Tree go up and down completely randomly.
Over the last 30 days Rite Aid Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Dollar Tree Inc has generated negative risk-adjusted returns adding no value to investors with long positions.