Group 1 Correlations

GPI Stock

USD 400.34 4.04 1.02%

The current 90-days correlation between Group 1 Automotive and Penske Automotive Group is 0.71 (i.e., Poor diversification). The correlation of Group 1 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.

Group 1 Correlation With Market

Very weak diversification

The correlation between Group 1 Automotive and DJI is 0.57 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Group 1 Automotive and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Group 1 Automotive. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with Group Stock

0.72	HD	Home Depot	Pair Corr
0.65	BBY	Best Buy	Pair Corr
0.65	DDS	Dillards	Pair Corr
0.7	DKS	Dicks Sporting Goods	Pair Corr
0.63	LOW	Lowes Companies	Pair Corr
0.82	WSM	Williams Sonoma	Pair Corr
0.79	ARHS	Arhaus Inc	Pair Corr
0.88	TTSH	Tile Shop Holdings	Pair Corr
0.76	CHWY	Chewy Inc	Pair Corr
0.81	EWCZ	European Wax Center	Pair Corr

Moving against Group Stock

0.46

Ford Motor

Pair Corr

Related Correlations Analysis

	PAG	LAD	AN	ABG	SAH
PAG		0.4	0.72	0.82	0.82	PAG
LAD	0.4		0.73	0.63	0.65	LAD
AN	0.72	0.73		0.9	0.95	AN
ABG	0.82	0.63	0.9		0.94	ABG
SAH	0.82	0.65	0.95	0.94		SAH
	PAG	LAD	AN	ABG	SAH

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Risk-Adjusted Indicators

There is a big difference between Group Stock performing well and Group 1 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 Group 1'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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
PAG	1.33	(0.04)	(0.10)	1.97	(2.58)	12.10
LAD	1.53	(0.23)	(0.24)	3.40	(3.71)	10.18
AN	1.30	0.05	(0.03)	2.26	(3.60)	8.00
ABG	1.67	0.00	(0.07)	2.92	(3.29)	18.09
SAH	1.43	(0.03)	(0.09)	2.72	(3.08)	11.27

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