Rite Aid is extremely risky given 1 month investment horizon. Rite Aid maintains Sharpe Ratio (i.e. Efficiency) of 0.1761 which implies Rite Aid had 0.1761% of return per unit of risk over the last 1 month. Our philosophy towards forecasting risk of a stock is to use both market data as well as company specific technical data. We found twenty-one different technical indicators which can help you to evaluate if expected returns of 1.0056% are justified by taking the suggested risk. Use Rite Aid Coefficient Of Variation of 567.83, Semi Deviation of 3.3 and Risk Adjusted Performance of 0.0976 to evaluate company specific risk that cannot be diversified away.
|Investment 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 TrendCheck current 30 days Rite Aid correlation with market (DOW)|
β = 3.4075
Rite Aid Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, the stock has beta coefficient of 3.4075 . 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. Moreover, Rite Aid Corporation has an alpha of 0.3141 implying that it can potentially generate 0.3141% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of Rite Aid is 567.82. The daily returns are destributed with a variance of 32.61 and standard deviation of 5.71. The mean deviation of Rite Aid Corporation is currently at 4.15. For similar time horizon, the selected benchmark (DOW) has volatility of 0.5