Correlation Between Rite Aid and Sugi Holdings

Can any of the company-specific risk be diversified away by investing in both Rite Aid and Sugi 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 Sugi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Rite Aid and Sugi Holdings

0.0

Correlation Coefficient

Rite Aid  Sugi Holdings

Pay attention - limited upside

The 3 months correlation between Rite and Sugi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid and Sugi Holdings CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugi Holdings CoLtd 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 Sugi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugi Holdings CoLtd has no effect on the direction of Rite Aid i.e., Rite Aid and Sugi Holdings go up and down completely randomly.

Pair Corralation between Rite Aid and Sugi Holdings

If you would invest  20.00  in Rite Aid on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Rite Aid or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Rite Aid  vs.  Sugi Holdings CoLtd

Rite Aid

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rite Aid has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rite Aid is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Sugi Holdings CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sugi Holdings CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sugi Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rite Aid and Sugi Holdings

The main advantage of trading using opposite Rite Aid and Sugi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rite Aid position performs unexpectedly, Sugi Holdings 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 Sugi Holdings will offset losses from the drop in Sugi Holdings' long position.

The idea behind Rite Aid and Sugi Holdings CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.