Advance Auto Correlations

AAP Stock

USD 37.46 0.18 0.48%

The current 90-days correlation between Advance Auto Parts and AutoZone is 0.26 (i.e., Modest diversification). The correlation of Advance Auto is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Advance Auto Correlation With Market

Significant diversification

The correlation between Advance Auto Parts and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Advance Auto Parts and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Advance Stock

0.87	W	Wayfair	Pair Corr
0.75	HD	Home Depot	Pair Corr
0.83	RH	RH Earnings Call This Week	Pair Corr
0.71	VSCO	Victorias Secret	Pair Corr
0.69	ETSY	Etsy Inc	Pair Corr
0.66	WOOF	Pet Acquisition LLC	Pair Corr
0.86	DDS	Dillards	Pair Corr
0.82	DKS	Dicks Sporting Goods	Pair Corr
0.68	XELB	Xcel Brands	Pair Corr
0.69	FND	Floor Decor Holdings	Pair Corr
0.64	KSS	Kohls Corp	Pair Corr
0.72	LOW	Lowes Companies	Pair Corr
0.74	WSM	Williams Sonoma	Pair Corr
0.89	GLBE	Global E Online	Pair Corr
0.84	JMIA	Jumia Technologies	Pair Corr
0.72	KIRK	Kirklands	Pair Corr
0.81	RENT	Rent the Runway	Pair Corr
0.72	ARHS	Arhaus Inc	Pair Corr
0.63	CHWY	Chewy Inc	Pair Corr
0.67	ULTA	Ulta Beauty	Pair Corr
0.68	UA	Under Armour C	Pair Corr
0.65	DOOO	BRP Inc Earnings Call This Week	Pair Corr
0.87	WING	Wingstop	Pair Corr
0.7	EWCZ	European Wax Center	Pair Corr

Moving against Advance Stock

0.66	VIPS	Vipshop Holdings	Pair Corr
0.61	AZO	AutoZone	Pair Corr
0.45	JD	JD Inc Adr	Pair Corr
0.41	PDD	PDD Holdings	Pair Corr
0.4	MELI	MercadoLibre	Pair Corr
0.69	BABA	Alibaba Group Holding	Pair Corr
0.44	ORLY	OReilly Automotive	Pair Corr
0.31	DPZ	Dominos Pizza Common	Pair Corr

Related Correlations Analysis

	AZO	TSCO	GPC	FIVE	ORLY	DKS	ULTA	WSM	RH
AZO		0.05	0.81	-0.85	0.87	-0.52	-0.83	-0.33	-0.82	AZO
TSCO	0.05		0.31	0.08	0.21	0.49	-0.02	0.61	0.24	TSCO
GPC	0.81	0.31		-0.74	0.74	-0.44	-0.8	-0.24	-0.72	GPC
FIVE	-0.85	0.08	-0.74		-0.74	0.6	0.91	0.37	0.83	FIVE
ORLY	0.87	0.21	0.74	-0.74		-0.25	-0.79	-0.04	-0.6	ORLY
DKS	-0.52	0.49	-0.44	0.6	-0.25		0.61	0.9	0.84	DKS
ULTA	-0.83	-0.02	-0.8	0.91	-0.79	0.61		0.36	0.83	ULTA
WSM	-0.33	0.61	-0.24	0.37	-0.04	0.9	0.36		0.74	WSM
RH	-0.82	0.24	-0.72	0.83	-0.6	0.84	0.83	0.74		RH
	AZO	TSCO	GPC	FIVE	ORLY	DKS	ULTA	WSM	RH

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ULTA	+ 0.91	FIVE
WSM	+ 0.9	DKS
ORLY	+ 0.87	AZO
RH	+ 0.84	DKS
RH	+ 0.83	FIVE
RH	+ 0.83	ULTA

High negative correlations

FIVE	- 0.85	AZO
ULTA	- 0.83	AZO
RH	- 0.82	AZO
ULTA	- 0.8	GPC
ULTA	- 0.79	ORLY
ORLY	- 0.74	FIVE

Risk-Adjusted Indicators

There is a big difference between Advance Stock performing well and Advance Auto Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Advance Auto's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AZO	0.95	0.13	0.14	0.24	1.07	(1.09)	2.08	(1.72)	5.90
TSCO	1.39	(0.07)	0.00	(0.17)	0.00	0.00	2.79	(3.61)	11.76
GPC	1.11	0.02	0.00	(0.03)	0.00	0.00	1.98	(2.45)	6.97
FIVE	2.19	(0.37)	0.00	(0.43)	0.00	0.00	4.63	(4.73)	11.81
ORLY	1.01	0.11	0.13	0.14	0.98	(1.09)	2.09	(1.67)	4.08
DKS	1.79	(0.09)	0.00	(0.13)	0.00	0.00	3.18	(4.42)	10.08
ULTA	1.58	(0.19)	0.00	(0.23)	0.00	0.00	2.50	(3.94)	17.36
WSM	1.92	(0.17)	0.00	(0.21)	0.00	0.00	3.45	(5.56)	10.71
RH	2.75	(0.73)	0.00	(0.42)	0.00	0.00	3.48	(7.06)	14.65

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