Correlation Between Asbury Automotive and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on Asbury Automotive and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Electrovaya Common.
Diversification Opportunities for Asbury Automotive and Electrovaya Common
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asbury and Electrovaya is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Electrovaya Common go up and down completely randomly.
Pair Corralation between Asbury Automotive and Electrovaya Common
Considering the 90-day investment horizon Asbury Automotive Group is expected to generate 0.22 times more return on investment than Electrovaya Common. However, Asbury Automotive Group is 4.46 times less risky than Electrovaya Common. It trades about -0.04 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.05 per unit of risk. If you would invest 25,590 in Asbury Automotive Group on September 19, 2024 and sell it today you would lose (360.00) from holding Asbury Automotive Group or give up 1.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Asbury Automotive Group vs. Electrovaya Common Shares
Performance |
Timeline |
Asbury Automotive |
Electrovaya Common Shares |
Asbury Automotive and Electrovaya Common Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asbury Automotive and Electrovaya Common
The main advantage of trading using opposite Asbury Automotive and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Elong Power Holding | Electrovaya Common vs. Eos Energy Enterprises | Electrovaya Common vs. Sunrise New Energy |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |