Correlation Between AutoNation and G III
Can any of the company-specific risk be diversified away by investing in both AutoNation and G III at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AutoNation and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoNation and G III Apparel Group, you can compare the effects of market volatilities on AutoNation and G III 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 AutoNation with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoNation and G III.
Diversification Opportunities for AutoNation and G III
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoNation and GIII is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AutoNation and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel and AutoNation 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 AutoNation are associated (or correlated) with G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of AutoNation i.e., AutoNation and G III go up and down completely randomly.
Pair Corralation between AutoNation and G III
Allowing for the 90-day total investment horizon AutoNation is expected to generate 1.04 times more return on investment than G III. However, AutoNation is 1.04 times more volatile than G III Apparel Group. It trades about 0.33 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.11 per unit of risk. If you would invest 15,721 in AutoNation on August 30, 2024 and sell it today you would earn a total of 2,201 from holding AutoNation or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AutoNation vs. G III Apparel Group
Performance |
| Timeline |
| AutoNation |
| G III Apparel |
AutoNation and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoNation and G III
The main advantage of trading using opposite AutoNation and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoNation position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| AutoNation vs. Sonic Automotive | AutoNation vs. Lithia Motors | AutoNation vs. Asbury Automotive Group | AutoNation vs. Penske Automotive Group |
| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |