Correlation Between Asbury Automotive and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Getty Realty 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 Getty Realty 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 Getty Realty, you can compare the effects of market volatilities on Asbury Automotive and Getty Realty 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 Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Getty Realty.
Diversification Opportunities for Asbury Automotive and Getty Realty
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asbury and Getty is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty 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 Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Getty Realty go up and down completely randomly.
Pair Corralation between Asbury Automotive and Getty Realty
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 1.99 times more return on investment than Getty Realty. However, Asbury Automotive is 1.99 times more volatile than Getty Realty. It trades about 0.23 of its potential returns per unit of risk. Getty Realty is currently generating about 0.17 per unit of risk. If you would invest 23,303 in Asbury Automotive Group on August 31, 2024 and sell it today you would earn a total of 2,700 from holding Asbury Automotive Group or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. Getty Realty
Performance |
| Timeline |
| Asbury Automotive |
| Getty Realty |
Asbury Automotive and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Getty Realty
The main advantage of trading using opposite Asbury Automotive and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Getty Realty 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 Getty Realty will offset losses from the drop in Getty Realty's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |