Correlation Between Asbury Automotive and STANLN
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By analyzing existing cross correlation between Asbury Automotive Group and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on Asbury Automotive and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and STANLN.
Diversification Opportunities for Asbury Automotive and STANLN
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asbury and STANLN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and STANLN go up and down completely randomly.
Pair Corralation between Asbury Automotive and STANLN
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 15.61 times more return on investment than STANLN. However, Asbury Automotive is 15.61 times more volatile than STANLN 7767 16 NOV 28. It trades about 0.38 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about 0.14 per unit of risk. If you would invest 23,642 in Asbury Automotive Group on November 3, 2024 and sell it today you would earn a total of 6,026 from holding Asbury Automotive Group or generate 25.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Asbury Automotive Group vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
| Asbury Automotive |
| STANLN 7767 16 |
Asbury Automotive and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asbury Automotive and STANLN
The main advantage of trading using opposite Asbury Automotive and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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