Rite Aid Volatility

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RAD -- USA Stock  

Downward Rally

Rite Aid appears to be somewhat reliable, given 3 months investment horizon. Rite Aid maintains Sharpe Ratio (i.e. Efficiency) of 0.0683, which implies the firm had 0.0683% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Rite Aid, which you can use to evaluate future volatility of the company. Please employ Rite Aid risk adjusted performance of 0.2531, coefficient of variation of 746.07, and semi deviation of 5.25 to confirm if our risk estimates are consistent with your expectations.

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Rite Aid Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Rite Aid daily returns, and it is calculated using variance and standard deviation. We also use Rite Aid's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Rite Aid volatility.

  Rite Aid Interest Expense

90 Days Market Risk

Somewhat reliable

Chance of Distress

Below Average

90 Days Economic Sensitivity

Responds to the market

Rite Aid Market Sensitivity And Downside Risk

Rite Aid beta coefficient measures the volatility of Rite Aid stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Rite Aid stock's returns against your selected market. In other words, Rite Aid's beta of 1.49 provides an investor with an approximation of how much risk Rite Aid stock can potentially add to one of your existing portfolios. Let's try to break down what Rite Aid's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Rite Aid will likely underperform.
3 Months Beta |Analyze Rite Aid Demand Trend
Check current 30 days Rite Aid correlation with market (DOW)
β

Current Rite Aid Beta Coefficient

 = 

Rite Aid Central Daily Price Deviations

It is essential to understand the difference between upside risk (as represented by Rite Aid's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Rite Aid stock's daily returns or price. Since the actual investment returns on holding a position in Rite Aid stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Rite Aid.

Rite Aid Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. 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.

Rite Aid Projected Return Density Against Market

Considering the 30-days investment horizon, the stock has the beta coefficient of 1.4899 indicating 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, Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Rite Aid or Diversified Wholesale And Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Rite Aid stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Rite Aid stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. The company has an alpha of 0.6545, implying that it can generate a 0.65 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Rite Aid Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Rite Aid or Diversified Wholesale And Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Rite Aid stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Rite Aid stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 30-days investment horizon, the coefficient of variation of Rite Aid is 1463.97. The daily returns are destributed with a variance of 47.02 and standard deviation of 6.86. The mean deviation of Rite Aid is currently at 4.65. For similar time horizon, the selected benchmark (DOW) has volatility of 1.83
α
Alpha over DOW
=0.65
β
Beta against DOW=1.49
σ
Overall volatility
=6.86
Ir
Information ratio =0.11

Rite Aid Return Volatility

Rite Aid historical daily return volatility represents how much Rite Aid stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm has volatility of 6.8568% on return distribution over 30 days investment horizon. By contrast, DOW inherits 1.8343% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About Rite Aid Volatility

Volatility is a rate at which the price of Rite Aid or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Rite Aid may increase or decrease. In other words, similar to Rite Aid's beta indicator, it measures the risk of Rite Aid and helps estimate the fluctuations that may happen in a short period of time. So if prices of Rite Aid fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Last ReportedProjected for 2020
Market Capitalization7.1 B7.6 B
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania. Rite Aid operates under Pharmaceutical Retailers classification in the United States and is traded on BATS Exchange. It employs 29840 people.

Rite Aid Investment Opportunity

Rite Aid has a volatility of 6.86 and is 3.75 times more volatile than DOW. 59  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 is higher than 59 () of all global equities and portfolios over the last 30 days. Use Rite Aid to protect your portfolios against small markets fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Rite Aid to be traded at $15.64 in 30 days. . Let's try to break down what Rite Aid's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Rite Aid will likely underperform.

Rite Aid correlation with market

correlation synergy
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.

Rite Aid Additional Risk Indicators

The analysis of various secondary risk indicators of Rite Aid is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Rite Aid investment, and either accepting that risk or mitigating it. Along with some common measures of Rite Aid stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging your existing portfolio. Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing the like to determine which investment holds the most risk.
Risk Adjusted Performance0.2531
Market Risk Adjusted Performance0.6084
Mean Deviation4.61
Semi Deviation5.25
Downside Deviation5.96
Coefficient Of Variation746.07
Standard Deviation6.73

Rite Aid Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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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