Correlation Between Asbury Automotive and SunOpta
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Asbury Automotive and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and SunOpta.
Diversification Opportunities for Asbury Automotive and SunOpta
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asbury and SunOpta is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and SunOpta go up and down completely randomly.
Pair Corralation between Asbury Automotive and SunOpta
Considering the 90-day investment horizon Asbury Automotive is expected to generate 1.84 times less return on investment than SunOpta. But when comparing it to its historical volatility, Asbury Automotive Group is 1.44 times less risky than SunOpta. It trades about 0.31 of its potential returns per unit of risk. SunOpta is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 598.00 in SunOpta on August 27, 2024 and sell it today you would earn a total of 184.00 from holding SunOpta or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. SunOpta
Performance |
| Timeline |
| Asbury Automotive |
| SunOpta |
Asbury Automotive and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and SunOpta
The main advantage of trading using opposite Asbury Automotive and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Asbury Automotive vs. Kingsway Financial Services | Asbury Automotive vs. KAR Auction Services | Asbury Automotive vs. Cango Inc | Asbury Automotive vs. Vroom Inc |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |