GPI vs LAD: Correlation
How closely do Group 1 Automotive, Inc. (GPI) and Lithia Motors, Inc. (LAD) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GPI and LAD?
On 3 years of weekly data the GPI/LAD correlation comes out at 0.57, moderate. The past 12 months show a weaker link (0.36) than the 3-year average (0.57). The 5-year figure is 0.61, and annualized covariance runs at 642.6 %².
Within GPI's tracked universe of 10 assets, LAD comes in at #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LAD outperformed by 54.8 percentage points (-44.8% for GPI against +10.0% for LAD).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
GPI vs LAD: side by side
| GPI (Group 1 Automotive, Inc.) | LAD (Lithia Motors, Inc.) | |
|---|---|---|
| 1-year return | -44.8% | +10.0% |
| 5-year return | +64.3% | +17.3% |
| Volatility (ann.) | 31.9% | 35.4% |
| Beta vs S&P 500 | 0.68 | 1.11 |
| Max drawdown (3Y) | -48.6% | -37.8% |
| Market cap | $3.1B | $8.2B |
| P/E (trailing) | 10.8 | 12.3 |
| Dividend yield | 0.04% | 0.64% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | GPI | LAD |
|---|---|---|
| 2022 | -6.9% | -30.6% |
| 2023 | +70.2% | +62.0% |
| 2024 | +39.1% | +9.3% |
| 2025 | -6.3% | -6.3% |
| 2026 | -33.1% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GPI and LAD good diversifiers for each other?
Only partially. A correlation of 0.57 means GPI and LAD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between GPI and LAD?
The GPI/LAD correlation stands at 0.57 on a 3-year window (1 year: 0.36, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is LAD a good diversifier for GPI?
Only partially. A correlation of 0.57 means GPI and LAD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/gpi-vs-lad.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/gpi-vs-lad/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: GPI correlations · LAD correlations
