Rite Aid Risk Analysis And Volatility Evaluation

RAD -- USA Stock  

USD 1.76  0.09  5.39%

Macroaxis considers Rite Aid to be unusually risky. Rite Aid maintains Sharpe Ratio (i.e. Efficiency) of -0.1567 which implies Rite Aid had -0.1567% of return per unit of risk over the last 1 month. Macroaxis philosophy towards forecasting risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Rite Aid exposes twenty-eight different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Rite Aid Coefficient Of Variation of 1,673 and Risk Adjusted Performance of 0.027852 to confirm risk estimate we provide.
 Time Horizon     30 Days    Login   to change

Rite Aid Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Rite Aid will likely underperform.
One Month Beta |Analyze Rite Aid Demand Trend
Check current 30 days Rite Aid correlation with market (DOW)
β = 1.5768
Rite Aid Large BetaRite Aid Beta Legend

Rite Aid Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Rite Aid Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Considering 30-days investment horizon, the stock has beta coefficient of 1.5768 . This implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Rite Aid will likely underperform. Additionally, Rite Aid Corporation has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of Rite Aid is -637.98. The daily returns are destributed with a variance of 11.36 and standard deviation of 3.37. The mean deviation of Rite Aid Corporation is currently at 2.28. For similar time horizon, the selected benchmark (DOW) has volatility of 0.61
α
Alpha over DOW
=0.44
β
Beta against DOW=1.58
σ
Overall volatility
=3.37
Ir
Information ratio =0.1

Actual Return Volatility

Rite Aid Corporation has volatility of 3.3698% on return distribution over 30 days investment horizon. DOW inherits 0.63% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Rite Aid Volatility Factors

30 Days Market Risk

Unusually risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Totally responsive to market

Investment Outlook

Rite Aid Investment Opportunity
Rite Aid Corporation has a volatility of 3.37 and is 5.35 times more volatile than DOW. 30% of all equities and portfolios are less risky than Rite Aid. Compared to the overall equity markets, volatility of historical daily returns of Rite Aid Corporation is lower than 30 (%) of all global equities and portfolios over the last 30 days. Use Rite Aid Corporation to enhance returns of your portfolios. The stock experiences very speculative upward sentiment.. Check odds of Rite Aid to be traded at $2.2 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Rite Aid will likely underperform.

Rite Aid correlation with market

Modest diversification
Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid Corp. and equity matching DJI index in the same portfolio.
Additionally take a look at Your Equity Center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.