Correlation Analysis Between Target and Rite Aid

This module allows you to analyze existing cross correlation between Target Corporation and Rite Aid Corporation. You can compare the effects of market volatilities on Target and Rite Aid 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 Target with a short position of Rite Aid. See also your portfolio center. Please also check ongoing floating volatility patterns of Target and Rite Aid.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Target  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively sluggish essential indicators, Target unveiled solid returns over the last few months and may actually be approaching a breakup point.
Rite Aid  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Rite Aid Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Rite Aid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Target and Rite Aid Volatility Contrast

 Predicted Return Density 
      Returns 

Target Corp.  vs.  Rite Aid Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Target is expected to generate 1.17 times less return on investment than Rite Aid. But when comparing it to its historical volatility, Target Corporation is 2.14 times less risky than Rite Aid. It trades about 0.13 of its potential returns per unit of risk. Rite Aid Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  630.00  in Rite Aid Corporation on August 22, 2019 and sell it today you would earn a total of  110.00  from holding Rite Aid Corporation or generate 17.46% return on investment over 30 days.

Pair Corralation between Target and Rite Aid

-0.09
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Target and Rite Aid

Target Corp. diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and Rite Aid Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Rite Aid and Target 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 Target Corporation are associated (or correlated) with Rite Aid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rite Aid has no effect on the direction of Target i.e. Target and Rite Aid go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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