Correlation Between SunOpta and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both SunOpta 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 SunOpta and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Asbury Automotive Group, you can compare the effects of market volatilities on SunOpta 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 SunOpta with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Asbury Automotive.
Diversification Opportunities for SunOpta and Asbury Automotive
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunOpta and Asbury is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and SunOpta 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 SunOpta 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 SunOpta i.e., SunOpta and Asbury Automotive go up and down completely randomly.
Pair Corralation between SunOpta and Asbury Automotive
Given the investment horizon of 90 days SunOpta is expected to generate 1.57 times less return on investment than Asbury Automotive. In addition to that, SunOpta is 1.42 times more volatile than Asbury Automotive Group. It trades about 0.01 of its total potential returns per unit of risk. Asbury Automotive Group is currently generating about 0.03 per unit of volatility. If you would invest 23,224 in Asbury Automotive Group on November 2, 2024 and sell it today you would earn a total of 6,218 from holding Asbury Automotive Group or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Asbury Automotive Group
Performance |
| Timeline |
| SunOpta |
| Asbury Automotive |
SunOpta and Asbury Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Asbury Automotive
The main advantage of trading using opposite SunOpta and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta 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.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings 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 | |
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |