CarMax Correlations

KMX Stock  USD 82.00  1.07  1.32%   
The current 90-days correlation between CarMax Inc and AutoNation is 0.54 (i.e., Very weak diversification). The correlation of CarMax is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

CarMax Correlation With Market

Weak diversification

The correlation between CarMax Inc and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CarMax Inc and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in CarMax Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with CarMax Stock

  0.66HD Home DepotPairCorr
  0.66EVGO Evgo Inc TrendingPairCorr

Moving against CarMax Stock

  0.31LL LL Flooring HoldingsPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
AZOORLY
AAPAZO
AAPORLY
ROSTORLY
  
High negative correlations   
ROSTAAP
ORLYAN
AZOAN
ROSTAZO
ROSTAN
AAPAN

Risk-Adjusted Indicators

There is a big difference between CarMax Stock performing well and CarMax Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CarMax's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.