Correlation Between SAG Holdings and Superior Industries
Can any of the company-specific risk be diversified away by investing in both SAG Holdings and Superior Industries 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 SAG Holdings and Superior Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAG Holdings Limited and Superior Industries International, you can compare the effects of market volatilities on SAG Holdings and Superior Industries 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 SAG Holdings with a short position of Superior Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAG Holdings and Superior Industries.
Diversification Opportunities for SAG Holdings and Superior Industries
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAG and Superior is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SAG Holdings Limited and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries and SAG Holdings 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 SAG Holdings Limited are associated (or correlated) with Superior Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Industries has no effect on the direction of SAG Holdings i.e., SAG Holdings and Superior Industries go up and down completely randomly.
Pair Corralation between SAG Holdings and Superior Industries
Considering the 90-day investment horizon SAG Holdings Limited is expected to under-perform the Superior Industries. In addition to that, SAG Holdings is 2.22 times more volatile than Superior Industries International. It trades about -0.42 of its total potential returns per unit of risk. Superior Industries International is currently generating about 0.0 per unit of volatility. If you would invest 282.00 in Superior Industries International on August 26, 2024 and sell it today you would lose (44.00) from holding Superior Industries International or give up 15.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.64% |
| Values | Daily Returns |
SAG Holdings Limited vs. Superior Industries Internatio
Performance |
| Timeline |
| SAG Holdings Limited |
| Superior Industries |
SAG Holdings and Superior Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAG Holdings and Superior Industries
The main advantage of trading using opposite SAG Holdings and Superior Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAG Holdings position performs unexpectedly, Superior Industries 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 Superior Industries will offset losses from the drop in Superior Industries' long position.| SAG Holdings vs. Ingram Micro Holding | SAG Holdings vs. Hewlett Packard Enterprise | SAG Holdings vs. Global Partners LP | SAG Holdings vs. WESCO International |
| Superior Industries vs. Monro Muffler Brake | Superior Industries vs. Dorman Products | Superior Industries vs. Motorcar Parts of | Superior Industries vs. Gentherm |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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