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 generate 2.76 times more return on investment than Dollar Tree. However, Rite Aid is 2.76 times more volatile than Dollar Tree Inc. It trades about 0.37 of its potential returns per unit of risk. Dollar Tree Inc is currently generating about 0.23 per unit of risk. If you would invest 192 in Rite Aid Corporation on December 17, 2017 and sell it today you would earn a total of 47 from holding Rite Aid Corporation or generate 24.48% return on investment 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Rite Aid Corporation are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Dollar Tree Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.