Correlation Between DISH Network and AutoNation
Can any of the company-specific risk be diversified away by investing in both DISH Network and AutoNation 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 DISH Network and AutoNation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DISH Network and AutoNation, you can compare the effects of market volatilities on DISH Network 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 DISH Network with a short position of AutoNation. Check out your portfolio center. Please also check ongoing floating volatility patterns of DISH Network and AutoNation.
Diversification Opportunities for DISH Network and AutoNation
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DISH and AutoNation is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DISH Network and AutoNation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation and DISH Network 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 DISH Network 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 DISH Network i.e., DISH Network and AutoNation go up and down completely randomly.
Pair Corralation between DISH Network and AutoNation
Given the investment horizon of 90 days DISH Network is expected to under-perform the AutoNation. In addition to that, DISH Network is 1.83 times more volatile than AutoNation. It trades about -0.05 of its total potential returns per unit of risk. AutoNation is currently generating about 0.03 per unit of volatility. If you would invest 12,382 in AutoNation on January 26, 2024 and sell it today you would earn a total of 3,570 from holding AutoNation or generate 28.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.04% |
| Values | Daily Returns |
DISH Network vs. AutoNation
Performance |
| Timeline |
| DISH Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AutoNation |
DISH Network and AutoNation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DISH Network and AutoNation
The main advantage of trading using opposite DISH Network and AutoNation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DISH Network 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.| DISH Network vs. Verizon Communications | DISH Network vs. ATT Inc | DISH Network vs. Comcast Corp | DISH Network vs. Charter Communications |
| AutoNation vs. Motorcar Parts of | AutoNation vs. Standard Motor Products | AutoNation vs. Stoneridge | AutoNation vs. Douglas Dynamics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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