Correlation Between Asbury Automotive and Genfit
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on Asbury Automotive and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Genfit.
Diversification Opportunities for Asbury Automotive and Genfit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asbury and Genfit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Genfit go up and down completely randomly.
Pair Corralation between Asbury Automotive and Genfit
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 0.61 times more return on investment than Genfit. However, Asbury Automotive Group is 1.64 times less risky than Genfit. It trades about 0.02 of its potential returns per unit of risk. Genfit is currently generating about 0.01 per unit of risk. If you would invest 23,600 in Asbury Automotive Group on October 26, 2024 and sell it today you would earn a total of 2,508 from holding Asbury Automotive Group or generate 10.63% 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. Genfit
Performance |
| Timeline |
| Asbury Automotive |
| Genfit |
Asbury Automotive and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Genfit
The main advantage of trading using opposite Asbury Automotive and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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