Correlation Between Samsung Electronics and Superior Industries

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

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

Diversification Opportunities for Samsung Electronics and Superior Industries

-0.64

Correlation Coefficient

Samsung Electronics  Superior Industries

Excellent diversification

The 3 months correlation between Samsung and Superior is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and Superior Industries go up and down completely randomly.

Pair Corralation between Samsung Electronics and Superior Industries

Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.17 times more return on investment than Superior Industries. However, Samsung Electronics Co is 5.79 times less risky than Superior Industries. It trades about 0.17 of its potential returns per unit of risk. Superior Industries International is currently generating about -0.21 per unit of risk. If you would invest  70,700  in Samsung Electronics Co on April 24, 2025 and sell it today you would earn a total of  15,300  from holding Samsung Electronics Co or generate 21.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.48%
Values	Daily Returns

Samsung Electronics Co  vs.  Superior Industries Internatio

Samsung Electronics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Samsung Electronics reported solid returns over the last few months and may actually be approaching a breakup point.

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. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Samsung Electronics and Superior Industries

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

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.