Correlation Between 251526CS6 and Asbury Automotive

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both 251526CS6 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 251526CS6 and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB 672 18 JAN 29 and Asbury Automotive Group, you can compare the effects of market volatilities on 251526CS6 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 251526CS6 with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of 251526CS6 and Asbury Automotive.

Diversification Opportunities for 251526CS6 and Asbury Automotive

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between 251526CS6 and Asbury is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding DB 672 18 JAN 29 and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and 251526CS6 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 DB 672 18 JAN 29 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 251526CS6 i.e., 251526CS6 and Asbury Automotive go up and down completely randomly.

Pair Corralation between 251526CS6 and Asbury Automotive

Assuming the 90 days trading horizon DB 672 18 JAN 29 is expected to under-perform the Asbury Automotive. But the bond apears to be less risky and, when comparing its historical volatility, DB 672 18 JAN 29 is 3.31 times less risky than Asbury Automotive. The bond trades about -0.22 of its potential returns per unit of risk. The Asbury Automotive Group is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  22,558  in Asbury Automotive Group on August 29, 2024 and sell it today you would earn a total of  3,814  from holding Asbury Automotive Group or generate 16.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

DB 672 18 JAN 29  vs.  Asbury Automotive Group

 Performance 
       Timeline  
DB 672 18 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days DB 672 18 JAN 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 251526CS6 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Asbury Automotive 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Asbury Automotive Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental drivers, Asbury Automotive may actually be approaching a critical reversion point that can send shares even higher in December 2024.

251526CS6 and Asbury Automotive Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 251526CS6 and Asbury Automotive

The main advantage of trading using opposite 251526CS6 and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 251526CS6 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.
251526CS6 vs. AEP TEX INC
251526CS6 vs. US BANK NATIONAL
251526CS6 vs. 3M Company
251526CS6 vs. Alcoa Corp
The idea behind DB 672 18 JAN 29 and Asbury Automotive Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY