Correlation Between Varta AG and AutoNation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Varta AG and AutoNation, you can compare the effects of market volatilities on Varta AG and AutoNation 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 Varta AG with a short position of AutoNation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varta AG and AutoNation.
Diversification Opportunities for Varta AG and AutoNation
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Varta and AutoNation is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Varta AG and AutoNation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation and Varta AG 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 Varta AG are associated (or correlated) with AutoNation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoNation has no effect on the direction of Varta AG i.e., Varta AG and AutoNation go up and down completely randomly.
Pair Corralation between Varta AG and AutoNation
Assuming the 90 days trading horizon Varta AG is expected to under-perform the AutoNation. In addition to that, Varta AG is 6.96 times more volatile than AutoNation. It trades about 0.0 of its total potential returns per unit of risk. AutoNation is currently generating about 0.02 per unit of volatility. If you would invest 15,840 in AutoNation on September 24, 2024 and sell it today you would earn a total of 390.00 from holding AutoNation or generate 2.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Varta AG vs. AutoNation
Performance |
Timeline |
Varta AG |
AutoNation |
Varta AG and AutoNation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Varta AG and AutoNation
The main advantage of trading using opposite Varta AG and AutoNation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varta AG position performs unexpectedly, AutoNation 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 AutoNation will offset losses from the drop in AutoNation's long position.Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. METTLER TOLEDO INTL | Varta AG vs. Mitie Group PLC | Varta AG vs. LODESTAR MIN |
AutoNation vs. Copart Inc | AutoNation vs. Zhongsheng Group Holdings | AutoNation vs. CarMax Inc | AutoNation vs. DIeteren Group SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |