Correlation Between Asbury Automotive and GENERAL
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By analyzing existing cross correlation between Asbury Automotive Group and GENERAL DYNAMICS P, you can compare the effects of market volatilities on Asbury Automotive and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and GENERAL.
Diversification Opportunities for Asbury Automotive and GENERAL
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asbury and GENERAL is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and GENERAL DYNAMICS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS P 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS P has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and GENERAL go up and down completely randomly.
Pair Corralation between Asbury Automotive and GENERAL
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 6.14 times more return on investment than GENERAL. However, Asbury Automotive is 6.14 times more volatile than GENERAL DYNAMICS P. It trades about 0.32 of its potential returns per unit of risk. GENERAL DYNAMICS P is currently generating about -0.18 per unit of risk. If you would invest 22,558 in Asbury Automotive Group on August 29, 2024 and sell it today you would earn a total of 3,814 from holding Asbury Automotive Group or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asbury Automotive Group vs. GENERAL DYNAMICS P
Performance |
| Timeline |
| Asbury Automotive |
| GENERAL DYNAMICS P |
Asbury Automotive and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and GENERAL
The main advantage of trading using opposite Asbury Automotive and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| GENERAL vs. The Coca Cola | GENERAL vs. JPMorgan Chase Co | GENERAL vs. Dupont De Nemours | GENERAL vs. Alcoa Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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