Correlation Between Asbury Automotive and Granite Real
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Granite Real 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 Granite Real 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 Granite Real Estate, you can compare the effects of market volatilities on Asbury Automotive and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Granite Real.
Diversification Opportunities for Asbury Automotive and Granite Real
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asbury and Granite is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Granite Real go up and down completely randomly.
Pair Corralation between Asbury Automotive and Granite Real
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 1.04 times more return on investment than Granite Real. However, Asbury Automotive is 1.04 times more volatile than Granite Real Estate. It trades about 0.02 of its potential returns per unit of risk. Granite Real Estate is currently generating about 0.0 per unit of risk. If you would invest 24,308 in Asbury Automotive Group on September 12, 2024 and sell it today you would earn a total of 1,366 from holding Asbury Automotive Group or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.31% |
| Values | Daily Returns |
Asbury Automotive Group vs. Granite Real Estate
Performance |
| Timeline |
| Asbury Automotive |
| Granite Real Estate |
Asbury Automotive and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Granite Real
The main advantage of trading using opposite Asbury Automotive and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Granite Real vs. SBM Offshore NV | Granite Real vs. Anterix | Granite Real vs. Sweetgreen | Granite Real vs. NETGEAR |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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