Correlation Between Sprouts Farmers and Rite Aid

By analyzing existing cross correlation between Sprouts Farmers Market and Rite Aid you can compare the effects of market volatilities on Sprouts Farmers 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 Sprouts Farmers with a short position of Rite Aid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Rite Aid.

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Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers and Rite Aid at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Sprouts Farmers and Rite Aid into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Sprouts Farmers and Rite Aid

-0.35
Correlation
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Very good diversification

The 3 months correlation between Sprouts and Rite Aid is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market Inc and Rite Aid Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Rite Aid and Sprouts Farmers 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 Sprouts Farmers Market 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 Sprouts Farmers i.e. Sprouts Farmers and Rite Aid go up and down completely randomly.

Pair Corralation between Sprouts Farmers and Rite Aid

Considering 30-days investment horizon, Sprouts Farmers Market is expected to generate 0.49 times more return on investment than Rite Aid. However, Sprouts Farmers Market is 2.02 times less risky than Rite Aid. It trades about 0.17 of its potential returns per unit of risk. Rite Aid is currently generating about 0.03 per unit of risk. If you would invest  1,651  in Sprouts Farmers Market on May 7, 2020 and sell it today you would earn a total of  844.00  from holding Sprouts Farmers Market or generate 51.12% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sprouts Farmers Market Inc  vs.  Rite Aid Corp.

 Performance (%) 
      Timeline 
Sprouts Farmers Market 
1111

Sprouts Farmers Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprouts Farmers Market are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Sprouts Farmers revealed solid returns over the last few months and may actually be approaching a breakup point.
Rite Aid 
22

Rite Aid Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Rite Aid are ranked lower than 2 (%) 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.

Sprouts Farmers and Rite Aid Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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