Correlation Between Rite Aid and Beijing Tong
Can any of the company-specific risk be diversified away by investing in both Rite Aid and Beijing Tong 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 Beijing Tong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rite Aid and Beijing Tong Ren, you can compare the effects of market volatilities on Rite Aid and Beijing Tong 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 Beijing Tong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rite Aid and Beijing Tong.
Diversification Opportunities for Rite Aid and Beijing Tong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rite and Beijing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid and Beijing Tong Ren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tong Ren 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 Beijing Tong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tong Ren has no effect on the direction of Rite Aid i.e., Rite Aid and Beijing Tong go up and down completely randomly.
Pair Corralation between Rite Aid and Beijing Tong
If you would invest 96.00 in Beijing Tong Ren on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Beijing Tong Ren or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rite Aid vs. Beijing Tong Ren
Performance |
| Timeline |
| Rite Aid |
| Beijing Tong Ren |
Rite Aid and Beijing Tong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rite Aid and Beijing Tong
The main advantage of trading using opposite Rite Aid and Beijing Tong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rite Aid position performs unexpectedly, Beijing Tong can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Beijing Tong will offset losses from the drop in Beijing Tong's long position.| Rite Aid vs. Walgreens Boots Alliance | Rite Aid vs. Alibaba Health Information | Rite Aid vs. Beijing Tong Ren | Rite Aid vs. PetMed Express |
| Beijing Tong vs. Tradeweb Markets | Beijing Tong vs. CARSALESCOM | Beijing Tong vs. Fast Retailing Co | Beijing Tong vs. SIDETRADE EO 1 |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |