Correlation Between Summit Environmental and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both Summit Environmental 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 Summit Environmental and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Environmental and Asbury Automotive Group, you can compare the effects of market volatilities on Summit Environmental 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 Summit Environmental with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Asbury Automotive.
Diversification Opportunities for Summit Environmental and Asbury Automotive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Asbury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and Summit Environmental 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 Summit Environmental 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 Summit Environmental i.e., Summit Environmental and Asbury Automotive go up and down completely randomly.
Pair Corralation between Summit Environmental and Asbury Automotive
If you would invest 22,558 in Asbury Automotive Group on August 27, 2024 and sell it today you would earn a total of 3,572 from holding Asbury Automotive Group or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Environmental vs. Asbury Automotive Group
Performance |
| Timeline |
| Summit Environmental |
| Asbury Automotive |
Summit Environmental and Asbury Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Asbury Automotive
The main advantage of trading using opposite Summit Environmental and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental 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.| Summit Environmental vs. Origin Materials | Summit Environmental vs. NL Industries | Summit Environmental vs. Highway Holdings Limited | Summit Environmental vs. Hurco Companies |
| Asbury Automotive vs. Kingsway Financial Services | Asbury Automotive vs. KAR Auction Services | Asbury Automotive vs. Cango Inc | Asbury Automotive 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |