Correlation Between AutoNation and DISH Network
Can any of the company-specific risk be diversified away by investing in both AutoNation and DISH Network 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 AutoNation and DISH Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoNation and DISH Network, you can compare the effects of market volatilities on AutoNation and DISH Network 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 AutoNation with a short position of DISH Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoNation and DISH Network.
Diversification Opportunities for AutoNation and DISH Network
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoNation and DISH is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AutoNation and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network and AutoNation 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 AutoNation are associated (or correlated) with DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of AutoNation i.e., AutoNation and DISH Network go up and down completely randomly.
Pair Corralation between AutoNation and DISH Network
If you would invest 577.00 in DISH Network on January 17, 2024 and sell it today you would earn a total of 0.00 from holding DISH Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
AutoNation vs. DISH Network
Performance |
| Timeline |
| AutoNation |
| DISH Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AutoNation and DISH Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoNation and DISH Network
The main advantage of trading using opposite AutoNation and DISH Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoNation position performs unexpectedly, DISH Network 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 DISH Network will offset losses from the drop in DISH Network's long position.| AutoNation vs. Cazoo Group | AutoNation vs. U Power Limited | AutoNation vs. SunCar Technology Group | AutoNation vs. Jiuzi Holdings |
| DISH Network vs. Verizon Communications | DISH Network vs. ATT Inc | DISH Network vs. Comcast Corp | DISH Network vs. Charter Communications |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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