Correlation Between Superior Uniform and Delta Apparel
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Delta Apparel 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 Superior Uniform and Delta Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Delta Apparel, you can compare the effects of market volatilities on Superior Uniform and Delta Apparel 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 Superior Uniform with a short position of Delta Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Delta Apparel.
Diversification Opportunities for Superior Uniform and Delta Apparel
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Delta is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Delta Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Apparel and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with Delta Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Apparel has no effect on the direction of Superior Uniform i.e., Superior Uniform and Delta Apparel go up and down completely randomly.
Pair Corralation between Superior Uniform and Delta Apparel
If you would invest 1,489 in Superior Uniform Group on August 27, 2024 and sell it today you would earn a total of 194.00 from holding Superior Uniform Group or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Superior Uniform Group vs. Delta Apparel
Performance |
| Timeline |
| Superior Uniform |
| Delta Apparel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Superior Uniform and Delta Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Delta Apparel
The main advantage of trading using opposite Superior Uniform and Delta Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, Delta Apparel 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 Delta Apparel will offset losses from the drop in Delta Apparel's long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
| Delta Apparel vs. Lakeland Industries | Delta Apparel vs. Vince Holding Corp | Delta Apparel vs. Jerash Holdings | Delta Apparel vs. G III Apparel Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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