Rite Aid Risk Analysis

Rite Aid Corporation -- USA Stock  

USD 1.86  0.01  0.54%

Macroaxis considers Rite Aid to be extremely risky. Rite Aid maintains Sharpe Ratio (i.e. Efficiency) of -0.2568 which implies Rite Aid had -0.2568% 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-six 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 (380.62) and Risk Adjusted Performance of (0.050644) to confirm risk estimate we provide.
Investment Horizon     30 Days    Login   to change

Rite Aid Market Sensitivity

As returns on market increase, returns on owning Rite Aid are expected to decrease by larger amounts. On the other hand, during market turmoil, Rite Aid is expected to significantly outperform it.
One Month Beta |Analyze Rite Aid Demand Trend
Check current 30 days Rite Aid correlation with market (DOW)
β = -2.5114
Rite Aid Large Negative BetaRite Aid Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, Rite Aid Corporation has beta of -2.5114 . This implies as returns on its benchmark rise, returns on holding Rite Aid Corporation are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Rite Aid is expected to outperform its benchmark. 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 -389.38. The daily returns are destributed with a variance of 16.54 and standard deviation of 4.07. The mean deviation of Rite Aid Corporation is currently at 2.97. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
=(0.79) 
βBeta against DOW=(2.51) 
σ
Overall volatility
= 4.07 
 IrInformation ratio =(0.29) 

Actual Return Volatility

Rite Aid Corporation has volatility of 4.0675% on return distribution over 30 days investment horizon. DOW inherits 0.2303% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Rite Aid Volatility Factors

30 Days Market Risk

Extremely risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Completely opposite to market

Total Debt

Rite Aid Total Debt History

Total Debt

Largest Trends

Rite Aid Largest Period Trend

Investment Outlook

Rite Aid Investment Opportunity
Rite Aid Corporation has a volatility of 4.07 and is 17.7 times more volatile than DOW. 38% 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 38 (%) of all global equities and portfolios over the last 30 days. Use Rite Aid Corporation to enhance returns of your portfolios. The stock experiences moderate upward volatility. Check odds of Rite Aid to be traded at $2.05 in 30 days. As returns on market increase, returns on owning Rite Aid are expected to decrease by larger amounts. On the other hand, during market turmoil, Rite Aid is expected to significantly outperform it.

Rite Aid correlation with market

Good 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.

Volatility Indicators

Rite Aid Current Risk Indicators