Correlation Between Asbury Automotive and SOCGEN
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By analyzing existing cross correlation between Asbury Automotive Group and SOCGEN 6447 12 JAN 27, you can compare the effects of market volatilities on Asbury Automotive and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and SOCGEN.
Diversification Opportunities for Asbury Automotive and SOCGEN
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asbury and SOCGEN is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and SOCGEN 6447 12 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 6447 12 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 6447 12 has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and SOCGEN go up and down completely randomly.
Pair Corralation between Asbury Automotive and SOCGEN
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 9.22 times more return on investment than SOCGEN. However, Asbury Automotive is 9.22 times more volatile than SOCGEN 6447 12 JAN 27. It trades about 0.05 of its potential returns per unit of risk. SOCGEN 6447 12 JAN 27 is currently generating about -0.01 per unit of risk. If you would invest 21,650 in Asbury Automotive Group on September 4, 2024 and sell it today you would earn a total of 4,885 from holding Asbury Automotive Group or generate 22.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.42% |
| Values | Daily Returns |
Asbury Automotive Group vs. SOCGEN 6447 12 JAN 27
Performance |
| Timeline |
| Asbury Automotive |
| SOCGEN 6447 12 |
Asbury Automotive and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and SOCGEN
The main advantage of trading using opposite Asbury Automotive and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
| SOCGEN vs. Hurco Companies | SOCGEN vs. Lululemon Athletica | SOCGEN vs. Asbury Automotive Group | SOCGEN vs. Revolve Group LLC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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