Correlation Between Asbury Automotive and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and CCSB Financial 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 CCSB Financial 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 CCSB Financial Corp, you can compare the effects of market volatilities on Asbury Automotive and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and CCSB Financial.
Diversification Opportunities for Asbury Automotive and CCSB Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asbury and CCSB is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and CCSB Financial go up and down completely randomly.
Pair Corralation between Asbury Automotive and CCSB Financial
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 0.99 times more return on investment than CCSB Financial. However, Asbury Automotive Group is 1.01 times less risky than CCSB Financial. It trades about 0.05 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.03 per unit of risk. If you would invest 17,655 in Asbury Automotive Group on August 25, 2024 and sell it today you would earn a total of 8,475 from holding Asbury Automotive Group or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. CCSB Financial Corp
Performance |
| Timeline |
| Asbury Automotive |
| CCSB Financial Corp |
Asbury Automotive and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and CCSB Financial
The main advantage of trading using opposite Asbury Automotive and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Asbury Automotive vs. Kingsway Financial Services | Asbury Automotive vs. KAR Auction Services | Asbury Automotive vs. Cango Inc | Asbury Automotive vs. Vroom Inc |
| CCSB Financial vs. Asbury Automotive Group | CCSB Financial vs. Kite Realty Group | CCSB Financial vs. Grocery Outlet Holding | CCSB Financial vs. Corporacion America Airports |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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