Sonic Automotive Correlations

SAH Stock

USD 60.87 0.22 0.36%

The current 90-days correlation between Sonic Automotive and AutoNation is 0.78 (i.e., Poor diversification). The correlation of Sonic Automotive 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.

Sonic Automotive Correlation With Market

Very weak diversification

The correlation between Sonic 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 Sonic Automotive and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sonic 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 nation.

For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.

Moving together with Sonic Stock

0.77	HD	Home Depot	Pair Corr
0.77	FORD	Forward Industries	Pair Corr
0.83	XPOF	Xponential Fitness	Pair Corr
0.81	ZGN	Ermenegildo Zegna Earnings Call This Week	Pair Corr
0.79	JAKK	JAKKS Pacific	Pair Corr

Moving against Sonic Stock

0.32

GOLF

Acushnet Holdings Corp

Pair Corr

Related Correlations Analysis

	LAD	AN	ABG	PAG	GPI
LAD		0.71	0.61	0.38	0.57	LAD
AN	0.71		0.9	0.71	0.92	AN
ABG	0.61	0.9		0.82	0.9	ABG
PAG	0.38	0.71	0.82		0.87	PAG
GPI	0.57	0.92	0.9	0.87		GPI
	LAD	AN	ABG	PAG	GPI

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Risk-Adjusted Indicators

There is a big difference between Sonic Stock performing well and Sonic Automotive 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 Sonic Automotive'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
LAD	1.53	(0.22)	(0.24)	3.40	(3.71)	10.18
AN	1.31	0.02	(0.05)	2.26	(3.60)	8.00
ABG	1.66	(0.02)	(0.08)	2.92	(3.29)	18.09
PAG	1.34	(0.05)	(0.11)	1.97	(2.58)	12.10
GPI	1.29	(0.01)	(0.08)	2.47	(2.41)	13.30

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