Correlation Between Asbury Automotive and ENTERPRISE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and ENTERPRISE 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 ENTERPRISE 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 ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on Asbury Automotive and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and ENTERPRISE.

Diversification Opportunities for Asbury Automotive and ENTERPRISE

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Asbury and ENTERPRISE is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and ENTERPRISE go up and down completely randomly.

Pair Corralation between Asbury Automotive and ENTERPRISE

Considering the 90-day investment horizon Asbury Automotive Group is expected to under-perform the ENTERPRISE. In addition to that, Asbury Automotive is 1.67 times more volatile than ENTERPRISE PRODS OPER. It trades about -0.04 of its total potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about 0.18 per unit of volatility. If you would invest  11,007  in ENTERPRISE PRODS OPER on September 13, 2024 and sell it today you would earn a total of  313.00  from holding ENTERPRISE PRODS OPER or generate 2.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy86.36%
ValuesDaily Returns

Asbury Automotive Group  vs.  ENTERPRISE PRODS OPER

 Performance 
       Timeline  
Asbury Automotive 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Asbury Automotive Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental drivers, Asbury Automotive reported solid returns over the last few months and may actually be approaching a breakup point.
ENTERPRISE PRODS OPER 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ENTERPRISE PRODS OPER has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ENTERPRISE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asbury Automotive and ENTERPRISE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Asbury Automotive and ENTERPRISE

The main advantage of trading using opposite Asbury Automotive and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.
Asbury Automotive vs. Sonic Automotive
Asbury Automotive vs. Lithia Motors
Asbury Automotive vs. AutoNation
Asbury Automotive vs. Penske Automotive Group
The idea behind Asbury Automotive Group and ENTERPRISE PRODS OPER pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ENTERPRISE vs. Meli Hotels International
ENTERPRISE vs. NextNav Warrant
ENTERPRISE vs. Uber Technologies
ENTERPRISE vs. BJs Restaurants
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Money Managers
Screen money managers from public funds and ETFs managed around the world
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Global Correlations
Find global opportunities by holding instruments from different markets


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY