Advance Auto Correlations

AAP Stock

USD 38.67 0.04 0.10%

The current 90-days correlation between Advance Auto Parts and AutoZone is 0.38 (i.e., Weak diversification). The correlation of Advance Auto is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Advance Auto Correlation With Market

Modest diversification

The correlation between Advance Auto Parts and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Advance Auto Parts and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Advance Stock

0.62	BGI	Birks Group	Pair Corr
0.64	DBI	Designer Brands	Pair Corr
0.74	DKS	Dicks Sporting Goods	Pair Corr
0.65	GAP	Gap, Earnings Call Today	Pair Corr
0.67	KMX	CarMax Inc	Pair Corr
0.67	GNLN	Greenlane Holdings	Pair Corr
0.78	ZUMZ	Zumiez Inc	Pair Corr
0.85	JILL	JJill Inc	Pair Corr

Moving against Advance Stock

0.64	BBW	Build A Bear Earnings Call This Week	Pair Corr
0.56	HD	Home Depot	Pair Corr
0.51	DLTH	Duluth Holdings Earnings Call This Week	Pair Corr
0.47	FIVE	Five Below Earnings Call This Week	Pair Corr
0.45	BQ	Boqii Holding Limited	Pair Corr
0.43	FNKO	Funko Inc	Pair Corr
0.39	BBY	Best Buy	Pair Corr
0.38	LB	LandBridge Company	Pair Corr
0.31	VSCO	Victorias Secret	Pair Corr
0.58	LOW	Lowes Companies	Pair Corr
0.46	PETS	PetMed Express	Pair Corr
0.43	GLBE	Global E Online Upward Rally	Pair Corr
0.43	CATO	Cato	Pair Corr
0.41	KIRK	Kirklands Earnings Call This Week	Pair Corr
0.41	POOL	Pool	Pair Corr

Related Correlations Analysis

	AZO	TSCO	GPC	FIVE	ORLY	DKS	ULTA	WSM	RH
AZO		0.16	0.29	-0.51	0.29	0.39	-0.19	-0.25	-0.27	AZO
TSCO	0.16		0.23	0.41	0.41	-0.24	0.0	0.43	0.53	TSCO
GPC	0.29	0.23		-0.09	-0.5	0.7	0.15	0.33	-0.25	GPC
FIVE	-0.51	0.41	-0.09		0.03	-0.38	0.51	0.47	0.73	FIVE
ORLY	0.29	0.41	-0.5	0.03		-0.55	-0.22	-0.16	0.5	ORLY
DKS	0.39	-0.24	0.7	-0.38	-0.55		0.01	-0.01	-0.47	DKS
ULTA	-0.19	0.0	0.15	0.51	-0.22	0.01		0.2	0.36	ULTA
WSM	-0.25	0.43	0.33	0.47	-0.16	-0.01	0.2		0.54	WSM
RH	-0.27	0.53	-0.25	0.73	0.5	-0.47	0.36	0.54		RH
	AZO	TSCO	GPC	FIVE	ORLY	DKS	ULTA	WSM	RH

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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

RH	+ 0.73	FIVE
DKS	+ 0.7	GPC
RH	+ 0.54	WSM
RH	+ 0.53	TSCO
ULTA	+ 0.51	FIVE
RH	+ 0.5	ORLY

High negative correlations

DKS	- 0.55	ORLY
FIVE	- 0.51	AZO
ORLY	- 0.5	GPC
RH	- 0.47	DKS
DKS	- 0.38	FIVE
RH	- 0.27	AZO

Risk-Adjusted Indicators

There is a big difference between Advance Stock performing well and Advance Auto 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 Advance Auto'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
AZO	1.06	(0.12)	0.00	(0.12)	0.00	0.00	2.14	(1.68)	6.36
TSCO	1.08	(0.02)	(0.03)	0.06	1.51	(1.10)	2.03	(2.25)	9.44
GPC	1.36	(0.26)	0.00	(0.16)	0.00	0.00	2.85	(2.36)	23.93
FIVE	2.50	0.20	0.02	(0.27)	2.88	(2.82)	5.04	(4.34)	16.58
ORLY	0.82	0.01	(0.01)	0.10	0.92	(0.82)	1.38	(1.55)	7.77
DKS	1.39	(0.26)	0.00	(0.36)	0.00	0.00	2.49	(3.16)	9.72
ULTA	1.38	(0.15)	0.00	(0.18)	0.00	0.00	2.89	(3.24)	8.40
WSM	2.24	0.40	0.13	0.90	2.35	(2.58)	4.52	(3.30)	13.79
RH	2.24	0.36	0.18	0.44	1.77	(2.90)	4.89	(3.29)	29.32

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