Correlation Between Asbury Automotive and PACIFIC
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By analyzing existing cross correlation between Asbury Automotive Group and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Asbury Automotive and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and PACIFIC.
Diversification Opportunities for Asbury Automotive and PACIFIC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asbury and PACIFIC is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and PACIFIC go up and down completely randomly.
Pair Corralation between Asbury Automotive and PACIFIC
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 1.06 times more return on investment than PACIFIC. However, Asbury Automotive is 1.06 times more volatile than PACIFIC GAS ELECTRIC. It trades about -0.05 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.06 per unit of risk. If you would invest 25,866 in Asbury Automotive Group on September 13, 2024 and sell it today you would lose (497.00) from holding Asbury Automotive Group or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Asbury Automotive Group vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Asbury Automotive |
| PACIFIC GAS ELECTRIC |
Asbury Automotive and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and PACIFIC
The main advantage of trading using opposite Asbury Automotive and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| PACIFIC vs. Southwest Airlines | PACIFIC vs. American Airlines Group | PACIFIC vs. Toro Co | PACIFIC vs. Steven Madden |
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 CEOs Directory module to screen CEOs from public companies around the world.
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