Correlation Between Asbury Automotive and MICROSOFT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Asbury Automotive Group and MICROSOFT PORATION, you can compare the effects of market volatilities on Asbury Automotive and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and MICROSOFT.
Diversification Opportunities for Asbury Automotive and MICROSOFT
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asbury and MICROSOFT is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and MICROSOFT go up and down completely randomly.
Pair Corralation between Asbury Automotive and MICROSOFT
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 2.06 times more return on investment than MICROSOFT. However, Asbury Automotive is 2.06 times more volatile than MICROSOFT PORATION. It trades about 0.05 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.01 per unit of risk. If you would invest 17,250 in Asbury Automotive Group on September 14, 2024 and sell it today you would earn a total of 8,245 from holding Asbury Automotive Group or generate 47.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asbury Automotive Group vs. MICROSOFT PORATION
Performance |
| Timeline |
| Asbury Automotive |
| MICROSOFT PORATION |
Asbury Automotive and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and MICROSOFT
The main advantage of trading using opposite Asbury Automotive and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| MICROSOFT vs. Minerals Technologies | MICROSOFT vs. Precision Drilling | MICROSOFT vs. Griffon | MICROSOFT vs. AKITA Drilling |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |