KAR Auction Correlations

KAR Stock

USD 20.59 0.05 0.24%

The current 90-days correlation between KAR Auction Services and CarGurus is 0.33 (i.e., Weak diversification). The correlation of KAR Auction 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.

KAR Auction Correlation With Market

Very weak diversification

The correlation between KAR Auction Services and DJI is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding KAR Auction Services and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KAR Auction Services. 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 KAR Stock

0.61	BR	Broadridge Financial	Pair Corr
0.75	LZ	LegalZoom	Pair Corr
0.68	WM	Waste Management	Pair Corr
0.71	VRSK	Verisk Analytics	Pair Corr
0.69	ADP	Automatic Data Processing	Pair Corr

Moving against KAR Stock

0.66	VCIG	VCI Global Limited	Pair Corr
0.62	DLHC	DLH Holdings Corp	Pair Corr
0.61	BV	BrightView Holdings	Pair Corr
0.48	WFCF	Where Food Comes	Pair Corr
0.46	NL	NL Industries	Pair Corr
0.4	FA	First Advantage Corp	Pair Corr
0.32	FC	Franklin Covey Earnings Call Tomorrow	Pair Corr
0.65	CXW	CoreCivic	Pair Corr
0.61	DLX	Deluxe	Pair Corr
0.58	FCN	FTI Consulting	Pair Corr
0.53	FORR	Forrester Research	Pair Corr
0.43	CIX	CompX International	Pair Corr
0.43	GEO	Geo Group	Pair Corr
0.42	EXPO	Exponent	Pair Corr
0.42	FTEK	Fuel Tech	Pair Corr
0.35	HNI	HNI Corp	Pair Corr
0.33	WLDN	Willdan Group	Pair Corr
0.66	KBR	KBR Inc	Pair Corr
0.62	FVRR	Fiverr International	Pair Corr

Related Correlations Analysis

	CARG	KFS	DRVN	GPI	RUSHB	SAH	ABG	KFSYF	CARS	RUSHA
CARG		0.62	-0.25	0.53	0.52	0.65	0.55	0.0	0.9	0.74	CARG
KFS	0.62		-0.2	0.03	0.02	0.08	0.0	0.0	0.79	0.25	KFS
DRVN	-0.25	-0.2		-0.3	0.33	-0.2	-0.13	0.0	-0.41	-0.09	DRVN
GPI	0.53	0.03	-0.3		0.6	0.93	0.9	0.0	0.42	0.78	GPI
RUSHB	0.52	0.02	0.33	0.6		0.69	0.64	0.0	0.24	0.76	RUSHB
SAH	0.65	0.08	-0.2	0.93	0.69		0.94	0.0	0.51	0.87	SAH
ABG	0.55	0.0	-0.13	0.9	0.64	0.94		0.0	0.41	0.75	ABG
KFSYF	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0	0.0	KFSYF
CARS	0.9	0.79	-0.41	0.42	0.24	0.51	0.41	0.0		0.61	CARS
RUSHA	0.74	0.25	-0.09	0.78	0.76	0.87	0.75	0.0	0.61		RUSHA
	CARG	KFS	DRVN	GPI	RUSHB	SAH	ABG	KFSYF	CARS	RUSHA

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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

ABG	+ 0.94	SAH
SAH	+ 0.93	GPI
CARS	+ 0.9	CARG
ABG	+ 0.9	GPI
RUSHA	+ 0.87	SAH
CARS	+ 0.79	KFS

High negative correlations

CARS	- 0.41	DRVN
GPI	- 0.3	DRVN
DRVN	- 0.25	CARG
SAH	- 0.2	DRVN
DRVN	- 0.2	KFS
ABG	- 0.13	DRVN

Risk-Adjusted Indicators

There is a big difference between KAR Stock performing well and KAR Auction 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 KAR Auction'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
CARG	1.83	(0.18)	0.00	(0.17)	0.00	0.00	3.15	(4.18)	20.92
KFS	1.36	(0.05)	0.00	(0.17)	0.00	0.00	3.04	(2.75)	10.70
DRVN	1.38	0.14	0.08	0.06	1.60	(1.55)	2.68	(3.47)	12.31
GPI	1.29	0.00	0.00	(0.07)	0.00	0.00	2.47	(2.41)	13.30
RUSHB	1.55	0.10	0.04	0.02	2.04	(1.62)	2.84	(3.04)	8.87
SAH	1.43	(0.03)	0.00	(0.09)	0.00	0.00	2.72	(3.08)	11.27
ABG	1.67	0.00	0.00	(0.07)	0.00	0.00	2.92	(3.29)	18.09
KFSYF	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
CARS	2.34	(0.49)	0.00	(0.32)	0.00	0.00	4.51	(4.19)	25.98
RUSHA	1.52	(0.08)	0.00	(0.13)	0.00	0.00	3.03	(3.72)	10.06

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