Correlation Between Asbury Automotive and Keurig
Specify exactly 2 symbols:
By analyzing existing cross correlation between Asbury Automotive Group and Keurig Dr Pepper, you can compare the effects of market volatilities on Asbury Automotive and Keurig 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 Keurig. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Keurig.
Diversification Opportunities for Asbury Automotive and Keurig
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asbury and Keurig is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Keurig go up and down completely randomly.
Pair Corralation between Asbury Automotive and Keurig
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 4.31 times more return on investment than Keurig. However, Asbury Automotive is 4.31 times more volatile than Keurig Dr Pepper. It trades about 0.23 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.13 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asbury Automotive Group vs. Keurig Dr Pepper
Performance |
| Timeline |
| Asbury Automotive |
| Keurig Dr Pepper |
Asbury Automotive and Keurig Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and Keurig
The main advantage of trading using opposite Asbury Automotive and Keurig positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Keurig 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 Keurig will offset losses from the drop in Keurig's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| Keurig vs. AEP TEX INC | Keurig vs. US BANK NATIONAL | Keurig vs. FactSet Research Systems | Keurig vs. Aurora Innovation |
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
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |