Rite Aid Volatility
Rite Aid Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Rite Aid pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Rite Aid's price changes. Investors will then calculate the volatility of Rite Aid's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Rite Aid's volatility:
Historical Volatility
This type of pink sheet volatility measures Rite Aid's fluctuations based on previous trends. It's commonly used to predict Rite Aid's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Rite Aid's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Rite Aid's to be redeemed at a future date.Transformation |
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Rite Aid Projected Return Density Against Market
Assuming the 90 days horizon Rite Aid has a beta that is very close to zero indicating the returns on DOW JONES INDUSTRIAL and Rite Aid do not appear to be sensible.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 Rite 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's price will be affected by overall pink sheet 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 pink sheet'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.
It does not look like Rite Aid's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Rite Aid Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Rite Aid Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Rite Aid is 0.0. The daily returns are distributed with a variance of 0.0 and standard deviation of 0.0. The mean deviation of Rite Aid is currently at 0.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 0.00 | |
Ir | Information ratio | 0.00 |
Rite Aid Pink Sheet Return Volatility
Rite Aid historical daily return volatility represents how much of Rite Aid pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise shows 0.0% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7049% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Rite Pink Sheet performing well and Rite Aid Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Rite Aid's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CNBI | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| ELVAY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SLGWF | 6.05 | 1.10 | 0.00 | 1.87 | 0.00 | 12.50 | 171.17 | |||
| SBUDF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| MSITF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| HCYTD | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| FLURF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| LAXAF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| LTTSF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SEPSF | 2.90 | (1.48) | 0.00 | 59.31 | 0.00 | 0.00 | 97.21 |
Rite Aid Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.7 and is 9.223372036854776E16 times more volatile than Rite Aid. 0 percent of all equities and portfolios are less risky than Rite Aid. You can use Rite Aid to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Rite Aid to be traded at 0.0 in 90 days.Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
| GOOG | Alphabet Inc Class C | |
| V | Visa Class A | |
| MSFT | Microsoft | |
| GOOG | Alphabet Inc Class C | |
| GM | General Motors | |
| F | Ford Motor |
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.
| Walker Dunlop vs. Rite Aid | ||
| Ford vs. Rite Aid | ||
| Alphabet vs. Rite Aid | ||
| Visa vs. Rite Aid | ||
| GM vs. Rite Aid | ||
| Microsoft vs. Rite Aid | ||
| Dupont De vs. Rite Aid | ||
| Citigroup vs. Rite Aid | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Rite Aid as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Rite Aid's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Rite Aid's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Rite Aid.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Other Consideration for investing in Rite Pink Sheet
If you are still planning to invest in Rite Aid check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Rite Aid's history and understand the potential risks before investing.
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