Correlation Between Rite Aid and Vipshop Holdings

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Rite Aid and Vipshop Holdings

0.48
  Correlation Coefficient
Rite Aid
Vipshop Holdings

Very weak diversification

The 3 months correlation between Rite Aid and Vipshop is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid Corp. and Vipshop Holdings Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Rite Aid 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 Rite Aid are associated (or correlated) with Vipshop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vipshop Holdings has no effect on the direction of Rite Aid i.e. Rite Aid and Vipshop Holdings go up and down completely randomly.

Pair Corralation between Rite Aid and Vipshop Holdings

Considering the 30-days investment horizon, Rite Aid is expected to generate 1.43 times less return on investment than Vipshop Holdings. In addition to that, Rite Aid is 1.72 times more volatile than Vipshop Holdings Limited. It trades about 0.07 of its total potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.17 per unit of volatility. If you would invest  1,566  in Vipshop Holdings Limited on June 9, 2020 and sell it today you would earn a total of  694.00  from holding Vipshop Holdings Limited or generate 44.32% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Rite Aid Corp.  vs.  Vipshop Holdings Limited

 Performance (%) 
      Timeline 
Rite Aid 
44

Rite Aid Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Rite Aid are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of rather fragile fundamental drivers, Rite Aid exhibited solid returns over the last few months and may actually be approaching a breakup point.
Vipshop Holdings 
1111

Vipshop Holdings Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Vipshop Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Rite Aid and Vipshop Holdings Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page