Pair Correlation Between Rite Aid and Vipshop Holdings

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

Pair Volatility

Considering 30-days investment horizon, Rite Aid Corporation is expected to generate 1.35 times more return on investment than Vipshop Holdings. However, Rite Aid is 1.35 times more volatile than Vipshop Holdings Limited. It trades about 0.19 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.06 per unit of risk. If you would invest  150  in Rite Aid Corporation on November 14, 2017 and sell it today you would earn a total of  33  from holding Rite Aid Corporation or generate 22.0% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Rite Aid and Vipshop Holdings
-0.33

Parameters

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

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Rite Aid

  
12 

Risk-Adjusted Performance

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

Vipshop Holdings Limited

  
4 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.