Correlation Between Logility and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both Logility and Asbury Automotive 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 Logility and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logility and Asbury Automotive Group, you can compare the effects of market volatilities on Logility and Asbury Automotive 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 Logility with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logility and Asbury Automotive.
Diversification Opportunities for Logility and Asbury Automotive
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Logility and Asbury is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Logility and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and Logility 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 Logility are associated (or correlated) with Asbury Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asbury Automotive has no effect on the direction of Logility i.e., Logility and Asbury Automotive go up and down completely randomly.
Pair Corralation between Logility and Asbury Automotive
Given the investment horizon of 90 days Logility is expected to generate 1.08 times more return on investment than Asbury Automotive. However, Logility is 1.08 times more volatile than Asbury Automotive Group. It trades about 0.03 of its potential returns per unit of risk. Asbury Automotive Group is currently generating about 0.03 per unit of risk. If you would invest 1,032 in Logility on September 14, 2024 and sell it today you would earn a total of 119.64 from holding Logility or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logility vs. Asbury Automotive Group
Performance |
| Timeline |
| Logility |
| Asbury Automotive |
Logility and Asbury Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logility and Asbury Automotive
The main advantage of trading using opposite Logility and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logility position performs unexpectedly, Asbury Automotive 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 Asbury Automotive will offset losses from the drop in Asbury Automotive's long position.| Logility vs. Unity Software | Logility vs. Daily Journal Corp | Logility vs. C3 Ai Inc | Logility vs. Blackline |
| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |