Correlation Between Asbury Automotive and COMSovereign Holding
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and COMSovereign Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Asbury Automotive and COMSovereign Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asbury Automotive Group and COMSovereign Holding Corp, you can compare the effects of market volatilities on Asbury Automotive and COMSovereign Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Asbury Automotive with a short position of COMSovereign Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and COMSovereign Holding.
Diversification Opportunities for Asbury Automotive and COMSovereign Holding
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asbury and COMSovereign is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp and Asbury Automotive is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Asbury Automotive Group are associated (or correlated) with COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and COMSovereign Holding go up and down completely randomly.
Pair Corralation between Asbury Automotive and COMSovereign Holding
If you would invest 23,821 in Asbury Automotive Group on September 26, 2024 and sell it today you would earn a total of 883.00 from holding Asbury Automotive Group or generate 3.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
Asbury Automotive Group vs. COMSovereign Holding Corp
Performance |
Timeline |
Asbury Automotive |
COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asbury Automotive and COMSovereign Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asbury Automotive and COMSovereign Holding
The main advantage of trading using opposite Asbury Automotive and COMSovereign Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, COMSovereign Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in COMSovereign Holding will offset losses from the drop in COMSovereign Holding's long position.Asbury Automotive vs. Macys Inc | Asbury Automotive vs. Wayfair | Asbury Automotive vs. 1StdibsCom | Asbury Automotive vs. Boqii Holding Limited |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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