Correlation Between High Performance and Lithia Motors
Can any of the company-specific risk be diversified away by investing in both High Performance and Lithia Motors 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 High Performance and Lithia Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Performance Beverages and Lithia Motors, you can compare the effects of market volatilities on High Performance and Lithia Motors 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 High Performance with a short position of Lithia Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and Lithia Motors.
Diversification Opportunities for High Performance and Lithia Motors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Lithia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Performance Beverages and Lithia Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithia Motors and High Performance 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 High Performance Beverages are associated (or correlated) with Lithia Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithia Motors has no effect on the direction of High Performance i.e., High Performance and Lithia Motors go up and down completely randomly.
Pair Corralation between High Performance and Lithia Motors
If you would invest 0.00 in High Performance Beverages on September 10, 2025 and sell it today you would earn a total of 0.00 from holding High Performance Beverages or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
High Performance Beverages vs. Lithia Motors
Performance |
| Timeline |
| High Performance Bev |
| Lithia Motors |
High Performance and Lithia Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Performance and Lithia Motors
The main advantage of trading using opposite High Performance and Lithia Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, Lithia Motors 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 Lithia Motors will offset losses from the drop in Lithia Motors' long position.| High Performance vs. Plant Veda Foods | High Performance vs. NOHO Inc | High Performance vs. Apple Rush | High Performance vs. Rocky Mountain High |
| Lithia Motors vs. AutoNation | Lithia Motors vs. LKQ Corporation | Lithia Motors vs. CarMax Inc | Lithia Motors vs. Levi Strauss Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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