Correlation Between Asbury Automotive and Toshiba
Can any of the company-specific risk be diversified away by investing in both Asbury Automotive and Toshiba 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 Toshiba 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 Toshiba, you can compare the effects of market volatilities on Asbury Automotive and Toshiba 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 Toshiba. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asbury Automotive and Toshiba.
Diversification Opportunities for Asbury Automotive and Toshiba
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asbury and Toshiba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asbury Automotive Group and Toshiba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba 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 Toshiba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba has no effect on the direction of Asbury Automotive i.e., Asbury Automotive and Toshiba go up and down completely randomly.
Pair Corralation between Asbury Automotive and Toshiba
If you would invest 23,642 in Asbury Automotive Group on December 2, 2024 and sell it today you would earn a total of 3,198 from holding Asbury Automotive Group or generate 13.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Asbury Automotive Group vs. Toshiba
Performance |
Timeline |
Asbury Automotive |
Toshiba |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Asbury Automotive and Toshiba Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asbury Automotive and Toshiba
The main advantage of trading using opposite Asbury Automotive and Toshiba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asbury Automotive position performs unexpectedly, Toshiba 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 Toshiba will offset losses from the drop in Toshiba's long position.Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive Group |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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