Correlation Between AutoNation and LOBO EV
Can any of the company-specific risk be diversified away by investing in both AutoNation and LOBO EV 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 LOBO EV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoNation and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on AutoNation and LOBO EV 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 LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoNation and LOBO EV.
Diversification Opportunities for AutoNation and LOBO EV
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoNation and LOBO is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding AutoNation and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES 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 LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of AutoNation i.e., AutoNation and LOBO EV go up and down completely randomly.
Pair Corralation between AutoNation and LOBO EV
Allowing for the 90-day total investment horizon AutoNation is expected to generate 0.25 times more return on investment than LOBO EV. However, AutoNation is 3.97 times less risky than LOBO EV. It trades about 0.04 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about 0.0 per unit of risk. If you would invest 13,322 in AutoNation on August 27, 2024 and sell it today you would earn a total of 3,924 from holding AutoNation or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 44.02% |
| Values | Daily Returns |
AutoNation vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| AutoNation |
| LOBO EV TECHNOLOGIES |
AutoNation and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoNation and LOBO EV
The main advantage of trading using opposite AutoNation and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoNation position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV's long position.| AutoNation vs. Kingsway Financial Services | AutoNation vs. KAR Auction Services | AutoNation vs. Cango Inc | AutoNation vs. Vroom Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |