Lithia Motors Correlations

LAD Stock

USD 305.02 1.70 0.55%

The current 90-days correlation between Lithia Motors and AutoNation is 0.72 (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 0.59 (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

0.85	HD	Home Depot	Pair Corr
0.85	WEYS	Weyco Group	Pair Corr
0.78	AAP	Advance Auto Parts	Pair Corr
0.82	FNKO	Funko Inc	Pair Corr
0.76	DBI	Designer Brands Buyout Trend	Pair Corr
0.73	PLCE	Childrens Place	Pair Corr
0.63	FORD	Forward Industries	Pair Corr
0.77	CMG	Chipotle Mexican Grill	Pair Corr
0.79	CRI	Carters	Pair Corr
0.75	FUN	Six Flags Entertainment	Pair Corr
0.85	KTB	Kontoor Brands	Pair Corr
0.79	XPOF	Xponential Fitness	Pair Corr
0.72	SKX	Skechers USA	Pair Corr
0.73	WWW	Wolverine World Wide	Pair Corr
0.79	ZGN	Ermenegildo Zegna Earnings Call This Week	Pair Corr
0.65	JAKK	JAKKS Pacific	Pair Corr
0.62	JOUT	Johnson Outdoors	Pair Corr
0.66	LCID	Lucid Group Aggressive Push	Pair Corr
0.74	ONON	On Holding	Pair Corr
0.73	PLAY	Dave Busters Enterta	Pair Corr
0.61	PLNT	Planet Fitness	Pair Corr

Moving against Lithia Stock

0.58	AZO	AutoZone	Pair Corr
0.38	JD	JD Inc Adr Aggressive Push	Pair Corr
0.32	PDD	PDD Holdings Buyout Trend	Pair Corr
0.39	MCD	McDonalds	Pair Corr

Related Correlations Analysis

	SAH	AN	ABG	PAG	GPI
SAH		0.95	0.93	0.8	0.92	SAH
AN	0.95		0.9	0.7	0.92	AN
ABG	0.93	0.9		0.81	0.89	ABG
PAG	0.8	0.7	0.81		0.86	PAG
GPI	0.92	0.92	0.89	0.86		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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
SAH	1.45	(0.03)	(0.10)	2.72	(3.08)	11.27
AN	1.31	0.03	(0.05)	2.26	(3.60)	8.00
ABG	1.65	0.00	(0.07)	2.92	(3.29)	18.09
PAG	1.35	(0.02)	(0.10)	1.97	(2.58)	12.10
GPI	1.27	0.01	(0.06)	2.47	(2.41)	13.30

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