Pair Correlation Between Rite Aid and Dollar Tree

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.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Rite Aid Corp.  vs   Dollar Tree Inc
 Performance (%) 
      Timeline 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between Rite Aid and Dollar Tree
0.84

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Rite Aid

  
24 

Risk-Adjusted Performance

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.

Dollar Tree Inc

  
15 

Risk-Adjusted Performance

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.