Correlation Between Asbury Automotive and ACG Metals
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and ACG Metals 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 Asbury Automotive and ACG Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asbury Automotive Group and ACG Metals Limited, you can compare the effects of market volatilities on Asbury Automotive and ACG Metals 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 Asbury Automotive with a short position of ACG Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and ACG Metals.
Diversification Opportunities for Asbury Automotive and ACG Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asbury and ACG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited and Asbury Automotive 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 Asbury Automotive Group are associated (or correlated) with ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and ACG Metals go up and down completely randomly.
Pair Corralation between Asbury Automotive and ACG Metals
If you would invest 22,558 in Asbury Automotive Group on August 28, 2024 and sell it today you would earn a total of 4,124 from holding Asbury Automotive Group or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. ACG Metals Limited
Performance |
| Timeline |
| Asbury Automotive |
| ACG Metals Limited |
Asbury Automotive and ACG Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and ACG Metals
The main advantage of trading using opposite Asbury Automotive and ACG Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, ACG Metals 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 ACG Metals will offset losses from the drop in ACG Metals' long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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