Rite Aid Risk Analysis

Rite Aid Corporation -- USA Stock  

USD 1.81  0.02  1.09%

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 Trend
Check current 30 days Rite Aid correlation with market (DOW)
β = 3.4075
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 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).
 Predicted Return Density 
      Returns 
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
α
Alpha over DOW
=0.31
βBeta against DOW=3.41
σ
Overall volatility
=5.71
 IrInformation ratio =0.14

Actual Return Volatility

Rite Aid Corporation has volatility of 5.7101% on return distribution over 30 days investment horizon. DOW inherits 0.5022% 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

Hypersensitive 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 5.71 and is 11.42 times more volatile than DOW. 53% 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 higher than 53 (%) of all global equities and portfolios over the last 30 days. Use Rite Aid Corporation to protect against small markets fluctuations. The stock experiences somewhat bearish sentiment, but market may correct it shortly. Check odds of Rite Aid to be traded at $1.7557 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

Weak 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.