LAD vs PAG: Correlation
How closely do Lithia Motors, Inc. (LAD) and Penske Automotive Group, Inc. (PAG) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LAD and PAG?
Over the past 3 years, LAD and PAG moved with a correlation of 0.67, which is strong. The link has loosened recently: the 1-year correlation (0.56) runs below the 3-year figure (0.67). Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 627.5 %².
PAG is one of the assets that tracks LAD most closely: it ranks #3 out of the 15 assets we track against LAD. The trailing year gives PAG the advantage: +10.0% versus +19.5%, a 9.5-point spread.
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.
LAD vs PAG: side by side
| LAD (Lithia Motors, Inc.) | PAG (Penske Automotive Group, Inc.) | |
|---|---|---|
| 1-year return | +10.0% | +19.5% |
| 5-year return | +17.3% | +177.2% |
| Volatility (ann.) | 35.4% | 26.3% |
| Beta vs S&P 500 | 1.11 | 0.66 |
| Max drawdown (3Y) | -37.8% | -24.0% |
| Market cap | $8.2B | $14.3B |
| P/E (trailing) | 12.3 | 15.8 |
| Dividend yield | 0.64% | 2.60% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LAD | PAG |
|---|---|---|
| 2022 | -30.6% | +9.2% |
| 2023 | +62.0% | +42.3% |
| 2024 | +9.3% | -2.5% |
| 2025 | -6.3% | +7.1% |
| 2026 | +12.3% | +41.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LAD and PAG good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LAD and PAG?
As of 2026-08-27, the correlation of weekly returns between LAD and PAG is 0.67 over 3 years, 0.56 over 1 year and 0.66 over 5 years.
Is PAG a good diversifier for LAD?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/lad-vs-pag.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lad-vs-pag/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LAD correlations · PAG correlations
