Correlation Between Consumer Automotive and Warehouse
Can any of the company-specific risk be diversified away by investing in both Consumer Automotive and Warehouse 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 Consumer Automotive and Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Automotive Finance and Warehouse Group, you can compare the effects of market volatilities on Consumer Automotive and Warehouse 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 Consumer Automotive with a short position of Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Automotive and Warehouse.
Diversification Opportunities for Consumer Automotive and Warehouse
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consumer and Warehouse is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Automotive Finance and Warehouse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouse Group and Consumer 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 Consumer Automotive Finance are associated (or correlated) with Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouse Group has no effect on the direction of Consumer Automotive i.e., Consumer Automotive and Warehouse go up and down completely randomly.
Pair Corralation between Consumer Automotive and Warehouse
If you would invest 54.00 in Warehouse Group on August 14, 2025 and sell it today you would earn a total of 0.00 from holding Warehouse Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consumer Automotive Finance vs. Warehouse Group
Performance |
| Timeline |
| Consumer Automotive |
| Warehouse Group |
Consumer Automotive and Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Automotive and Warehouse
The main advantage of trading using opposite Consumer Automotive and Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Automotive position performs unexpectedly, Warehouse 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 Warehouse will offset losses from the drop in Warehouse's long position.| Consumer Automotive vs. Kongsberg Automotive ASA | Consumer Automotive vs. Exco Technologies Limited | Consumer Automotive vs. Akebono Brake Industry | Consumer Automotive vs. Warehouse Group |
| Warehouse vs. OXE Marine AB | Warehouse vs. Akebono Brake Industry | Warehouse vs. Ainsworth Game Technology | Warehouse vs. PointsBet Holdings Limited |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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