Correlation Between Tradeshow Marketing and Asbury Automotive

Can any of the company-specific risk be diversified away by investing in both Tradeshow Marketing and Asbury Automotive 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 Tradeshow Marketing and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tradeshow Marketing and Asbury Automotive Group, you can compare the effects of market volatilities on Tradeshow Marketing and Asbury Automotive 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 Tradeshow Marketing with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeshow Marketing and Asbury Automotive.

Diversification Opportunities for Tradeshow Marketing and Asbury Automotive

0.0

Correlation Coefficient

Tradeshow Marketing  Asbury Automotive

Pay attention - limited upside

The 3 months correlation between Tradeshow and Asbury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tradeshow Marketing and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and Tradeshow Marketing 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 Tradeshow Marketing are associated (or correlated) with Asbury Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asbury Automotive has no effect on the direction of Tradeshow Marketing i.e., Tradeshow Marketing and Asbury Automotive go up and down completely randomly.

Pair Corralation between Tradeshow Marketing and Asbury Automotive

If you would invest  0.00  in Tradeshow Marketing on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Tradeshow Marketing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.44%
Values	Daily Returns

Tradeshow Marketing  vs.  Asbury Automotive Group

Tradeshow Marketing

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Tradeshow Marketing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, Tradeshow Marketing is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Asbury Automotive

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Asbury Automotive Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental drivers, Asbury Automotive reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tradeshow Marketing and Asbury Automotive

The main advantage of trading using opposite Tradeshow Marketing and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeshow Marketing position performs unexpectedly, Asbury Automotive 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 Asbury Automotive will offset losses from the drop in Asbury Automotive's long position.

The idea behind Tradeshow Marketing and Asbury Automotive Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..