Correlation Between Asbury Automotive and Endo International
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Endo International 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 Endo International 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 Endo International PLC, you can compare the effects of market volatilities on Asbury Automotive and Endo International 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 Endo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Endo International.
Diversification Opportunities for Asbury Automotive and Endo International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asbury and Endo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Endo International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endo International PLC 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 Endo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endo International PLC has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Endo International go up and down completely randomly.
Pair Corralation between Asbury Automotive and Endo International
If you would invest 17,430 in Asbury Automotive Group on September 21, 2024 and sell it today you would earn a total of 7,007 from holding Asbury Automotive Group or generate 40.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. Endo International PLC
Performance |
| Timeline |
| Asbury Automotive |
| Endo International PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asbury Automotive and Endo International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Endo International
The main advantage of trading using opposite Asbury Automotive and Endo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Endo International 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 Endo International will offset losses from the drop in Endo International's 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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