Correlation Between Superior Industries and SECURITAS

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

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

Diversification Opportunities for Superior Industries and SECURITAS

-0.11

Correlation Coefficient

Superior Industries  SECURITAS

Good diversification

The 3 months correlation between Superior and SECURITAS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Superior Industries Internatio and SECURITAS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURITAS B and Superior Industries 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 Industries International are associated (or correlated) with SECURITAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURITAS B has no effect on the direction of Superior Industries i.e., Superior Industries and SECURITAS go up and down completely randomly.

Pair Corralation between Superior Industries and SECURITAS

Assuming the 90 days horizon Superior Industries International is expected to under-perform the SECURITAS. In addition to that, Superior Industries is 5.04 times more volatile than SECURITAS B . It trades about -0.16 of its total potential returns per unit of risk. SECURITAS B is currently generating about 0.02 per unit of volatility. If you would invest  1,281  in SECURITAS B on April 20, 2025 and sell it today you would earn a total of  13.00  from holding SECURITAS B or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Superior Industries Internatio  vs.  SECURITAS B

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 unsteady 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.

SECURITAS B

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SECURITAS B are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SECURITAS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Superior Industries and SECURITAS

The main advantage of trading using opposite Superior Industries and SECURITAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Industries position performs unexpectedly, SECURITAS 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 SECURITAS will offset losses from the drop in SECURITAS's long position.

The idea behind Superior Industries International and SECURITAS B 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.