Correlation Between Asbury Automotive and Novo Resources
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Novo Resources 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 Novo Resources 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 Novo Resources Corp, you can compare the effects of market volatilities on Asbury Automotive and Novo Resources 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 Novo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Novo Resources.
Diversification Opportunities for Asbury Automotive and Novo Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asbury and Novo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Novo Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Resources 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 Novo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Resources Corp has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Novo Resources go up and down completely randomly.
Pair Corralation between Asbury Automotive and Novo Resources
If you would invest 23,698 in Asbury Automotive Group on September 4, 2024 and sell it today you would earn a total of 2,804 from holding Asbury Automotive Group or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Asbury Automotive Group vs. Novo Resources Corp
Performance |
| Timeline |
| Asbury Automotive |
| Novo Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asbury Automotive and Novo Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Novo Resources
The main advantage of trading using opposite Asbury Automotive and Novo Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Novo Resources 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 Novo Resources will offset losses from the drop in Novo Resources' long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Novo Resources vs. Western Digital | Novo Resources vs. Westrock Coffee | Novo Resources vs. Oatly Group AB | Novo Resources vs. ServiceNow |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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