Carvana Correlations

CVNA Stock

USD 176.09 9.57 5.75%

The current 90-days correlation between Carvana and CarMax Inc is 0.47 (i.e., Very weak diversification). The correlation of Carvana 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.

Carvana Correlation With Market

Very weak diversification

The correlation between Carvana Co and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Carvana Co 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 Carvana Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Carvana Stock

0.68	W	Wayfair	Pair Corr
0.78	DIBS	1StdibsCom	Pair Corr
0.82	AN	AutoNation	Pair Corr
0.8	HD	Home Depot	Pair Corr
0.61	WEYS	Weyco Group	Pair Corr
0.63	ETSY	Etsy Inc	Pair Corr
0.62	WRBY	Warby Parker Buyout Trend	Pair Corr
0.73	FLWS	1 800 FLOWERSCOM	Pair Corr
0.8	ABG	Asbury Automotive	Pair Corr
0.7	BBY	Best Buy	Pair Corr

Related Correlations Analysis

	SFT	CZOO	KMX	UCAR	SDA	JZXN	VRM	AN	LAD
SFT		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	SFT
CZOO	0.0		0.0	0.0	0.0	0.0	0.0	0.0	0.0	CZOO
KMX	0.0	0.0		0.08	0.23	-0.31	-0.54	0.7	0.91	KMX
UCAR	0.0	0.0	0.08		0.73	-0.79	-0.63	-0.21	0.3	UCAR
SDA	0.0	0.0	0.23	0.73		-0.93	-0.75	0.0	0.45	SDA
JZXN	0.0	0.0	-0.31	-0.79	-0.93		0.8	-0.01	-0.52	JZXN
VRM	0.0	0.0	-0.54	-0.63	-0.75	0.8		-0.33	-0.74	VRM
AN	0.0	0.0	0.7	-0.21	0.0	-0.01	-0.33		0.67	AN
LAD	0.0	0.0	0.91	0.3	0.45	-0.52	-0.74	0.67		LAD
	SFT	CZOO	KMX	UCAR	SDA	JZXN	VRM	AN	LAD

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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

LAD	+ 0.91	KMX
VRM	+ 0.8	JZXN
SDA	+ 0.73	UCAR
AN	+ 0.7	KMX
LAD	+ 0.67	AN
LAD	+ 0.45	SDA

High negative correlations

JZXN	- 0.93	SDA
JZXN	- 0.79	UCAR
VRM	- 0.75	SDA
LAD	- 0.74	VRM
VRM	- 0.63	UCAR
VRM	- 0.54	KMX

Risk-Adjusted Indicators

There is a big difference between Carvana Stock performing well and Carvana 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 Carvana'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
SFT	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
CZOO	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
KMX	1.40	(0.17)	0.00	(0.23)	0.00	0.00	3.17	(3.49)	9.29
UCAR	5.81	(1.01)	0.00	(0.75)	0.00	0.00	9.36	(14.60)	44.01
SDA	3.49	(0.69)	0.00	(0.96)	0.00	0.00	5.49	(7.59)	47.88
JZXN	8.62	2.92	0.41	(3.58)	6.47	(11.42)	17.02	(14.01)	79.70
VRM	12.93	5.31	1.06	(0.80)	2.63	(24.04)	4.42	(4.69)	437.18
AN	1.29	0.03	0.00	(0.08)	0.00	0.00	2.26	(3.60)	8.00
LAD	1.50	(0.22)	0.00	(0.27)	0.00	0.00	3.40	(3.71)	10.18

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