Correlation Between Asbury Automotive and Crixus Bh3
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Crixus Bh3 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 Crixus Bh3 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 Crixus Bh3 Acquisition, you can compare the effects of market volatilities on Asbury Automotive and Crixus Bh3 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 Crixus Bh3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Crixus Bh3.
Diversification Opportunities for Asbury Automotive and Crixus Bh3
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asbury and Crixus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Crixus Bh3 Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crixus Bh3 Acquisition 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 Crixus Bh3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crixus Bh3 Acquisition has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Crixus Bh3 go up and down completely randomly.
Pair Corralation between Asbury Automotive and Crixus Bh3
If you would invest 23,142 in Asbury Automotive Group on August 30, 2024 and sell it today you would earn a total of 2,861 from holding Asbury Automotive Group or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Asbury Automotive Group vs. Crixus Bh3 Acquisition
Performance |
| Timeline |
| Asbury Automotive |
| Crixus Bh3 Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asbury Automotive and Crixus Bh3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Crixus Bh3
The main advantage of trading using opposite Asbury Automotive and Crixus Bh3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Crixus Bh3 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 Crixus Bh3 will offset losses from the drop in Crixus Bh3's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Crixus Bh3 vs. GMS Inc | Crixus Bh3 vs. Asbury Automotive Group | Crixus Bh3 vs. LB Foster | Crixus Bh3 vs. Saia Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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