Lithia Motors Correlations

LAD Stock

USD 346.17 1.84 0.53%

The current 90-days correlation between Lithia Motors and AutoNation is 0.6 (i.e., Poor diversification). The correlation of Lithia Motors 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.

Lithia Motors Correlation With Market

Very weak diversification

The correlation between Lithia Motors and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lithia Motors 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 Lithia Motors. 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.

For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.

Moving together with Lithia Stock

0.71	HD	Home Depot	Pair Corr
0.61	EYE	National Vision Holdings	Pair Corr
0.63	GPC	Genuine Parts	Pair Corr
0.66	LOW	Lowes Companies Earnings Call Today	Pair Corr

Moving against Lithia Stock

0.56	JL	J Long Group	Pair Corr
0.56	ASO	Academy Sports Outdoors	Pair Corr
0.47	FNKO	Funko Inc Earnings Call This Week	Pair Corr
0.39	GCO	Genesco	Pair Corr
0.39	HOUR	Hour Loop	Pair Corr
0.35	MNSO	Miniso Group Holding Buyout Trend	Pair Corr
0.31	MOGU	MOGU Inc	Pair Corr

Related Correlations Analysis

	SAH	AN	ABG	PAG	GPI
SAH		0.96	0.9	0.8	0.91	SAH
AN	0.96		0.87	0.73	0.96	AN
ABG	0.9	0.87		0.82	0.86	ABG
PAG	0.8	0.73	0.82		0.68	PAG
GPI	0.91	0.96	0.86	0.68		GPI
	SAH	AN	ABG	PAG	GPI

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Risk-Adjusted Indicators

There is a big difference between Lithia Stock performing well and Lithia Motors 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 Lithia Motors' 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
SAH	1.41	0.15	0.08	0.11	1.69	(1.52)	2.86	(2.68)	10.49
AN	1.11	0.16	0.11	0.14	1.29	(1.19)	2.67	(1.82)	8.25
ABG	1.48	0.12	0.07	0.09	1.59	(1.55)	3.07	(3.00)	15.39
PAG	1.20	0.06	0.05	0.06	1.17	(1.39)	2.34	(1.69)	9.41
GPI	1.07	0.20	0.14	0.19	1.07	(1.09)	2.78	(1.86)	6.74

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