Correlation Between NATIONAL HEALTHCARE and Superior Industries

Can any of the company-specific risk be diversified away by investing in both NATIONAL HEALTHCARE 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 NATIONAL HEALTHCARE and Superior Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NATIONAL HEALTHCARE and Superior Industries International, you can compare the effects of market volatilities on NATIONAL HEALTHCARE 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 NATIONAL HEALTHCARE with a short position of Superior Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL HEALTHCARE and Superior Industries.

Diversification Opportunities for NATIONAL HEALTHCARE and Superior Industries

-0.85

Correlation Coefficient

NATIONAL HEALTHCARE  Superior Industries

Pay attention - limited upside

The 3 months correlation between NATIONAL and Superior is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL HEALTHCARE and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries and NATIONAL HEALTHCARE 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 NATIONAL HEALTHCARE 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 NATIONAL HEALTHCARE i.e., NATIONAL HEALTHCARE and Superior Industries go up and down completely randomly.

Pair Corralation between NATIONAL HEALTHCARE and Superior Industries

Assuming the 90 days trading horizon NATIONAL HEALTHCARE is expected to generate 0.13 times more return on investment than Superior Industries. However, NATIONAL HEALTHCARE is 7.5 times less risky than Superior Industries. It trades about 0.1 of its potential returns per unit of risk. Superior Industries International is currently generating about -0.16 per unit of risk. If you would invest  8,053  in NATIONAL HEALTHCARE on April 23, 2025 and sell it today you would earn a total of  747.00  from holding NATIONAL HEALTHCARE or generate 9.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	93.75%
Values	Daily Returns

NATIONAL HEALTHCARE  vs.  Superior Industries Internatio

NATIONAL HEALTHCARE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NATIONAL HEALTHCARE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, NATIONAL HEALTHCARE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Superior Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Superior Industries International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with NATIONAL HEALTHCARE and Superior Industries

The main advantage of trading using opposite NATIONAL HEALTHCARE and Superior Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL HEALTHCARE 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.

The idea behind NATIONAL HEALTHCARE and Superior Industries International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.