Standard Correlations

SMP Stock

USD 26.19 0.43 1.67%

The current 90-days correlation between Standard Motor Products and Dorman Products is 0.28 (i.e., Modest diversification). The correlation of Standard is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Standard Correlation With Market

Weak diversification

The correlation between Standard Motor Products and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Standard Motor Products and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Standard Motor Products. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Standard Stock

0.73	BWA	BorgWarner	Pair Corr
0.7	MGA	Magna International	Pair Corr
0.61	MOD	Modine Manufacturing	Pair Corr
0.61	GNTX	Gentex	Pair Corr
0.63	INVZ	Innoviz Technologies	Pair Corr
0.72	LCID	Lucid Group Aggressive Push	Pair Corr
0.68	NWTN	NWTN Class B	Pair Corr
0.76	VFSWW	VinFast Auto	Pair Corr
0.71	RIVN	Rivian Automotive Aggressive Push	Pair Corr
0.95	ADNT	Adient PLC	Pair Corr
0.86	TSLA	Tesla Inc Buyout Trend	Pair Corr
0.64	M	Macys Inc	Pair Corr
0.92	W	Wayfair Buyout Trend	Pair Corr
0.92	BC	Brunswick	Pair Corr
0.85	HD	Home Depot	Pair Corr
0.91	RH	RH Earnings Call Tomorrow	Pair Corr
0.73	UA	Under Armour C	Pair Corr
0.7	DOOO	BRP Inc Earnings Call Tomorrow	Pair Corr
0.84	VSCO	Victorias Secret	Pair Corr
0.88	EEIQ	Elite Education Group	Pair Corr
0.92	WEYS	Weyco Group	Pair Corr
0.9	ETSY	Etsy Inc	Pair Corr

Moving against Standard Stock

0.86	IH	Ihuman Inc	Pair Corr
0.84	GV	Visionary Education	Pair Corr
0.58	LI	Li Auto	Pair Corr
0.53	JD	JD Inc Adr	Pair Corr
0.41	XOSWW	Xos Equity Warrants	Pair Corr
0.32	F	Ford Motor Aggressive Push	Pair Corr
0.79	VSTA	Vasta Platform	Pair Corr
0.77	VIPS	Vipshop Holdings	Pair Corr
0.75	AZO	AutoZone	Pair Corr
0.5	ADT	ADT Inc	Pair Corr
0.4	AGS	PlayAGS	Pair Corr

Related Correlations Analysis

	DORM	MPAA	PLOW	SRI	MNRO	CPS	LEA	CVGI	GNTX
DORM		-0.33	0.02	0.57	0.44	0.19	-0.25	0.48	0.56	DORM
MPAA	-0.33		0.25	-0.21	-0.57	0.0	0.38	-0.58	-0.59	MPAA
PLOW	0.02	0.25		-0.54	-0.47	0.48	0.39	-0.05	-0.43	PLOW
SRI	0.57	-0.21	-0.54		0.66	-0.17	-0.34	0.49	0.76	SRI
MNRO	0.44	-0.57	-0.47	0.66		-0.18	-0.3	0.79	0.92	MNRO
CPS	0.19	0.0	0.48	-0.17	-0.18		0.33	-0.11	-0.07	CPS
LEA	-0.25	0.38	0.39	-0.34	-0.3	0.33		-0.25	-0.23	LEA
CVGI	0.48	-0.58	-0.05	0.49	0.79	-0.11	-0.25		0.77	CVGI
GNTX	0.56	-0.59	-0.43	0.76	0.92	-0.07	-0.23	0.77		GNTX
	DORM	MPAA	PLOW	SRI	MNRO	CPS	LEA	CVGI	GNTX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GNTX	+ 0.92	MNRO
CVGI	+ 0.79	MNRO
GNTX	+ 0.77	CVGI
GNTX	+ 0.76	SRI
MNRO	+ 0.66	SRI
SRI	+ 0.57	DORM

High negative correlations

GNTX	- 0.59	MPAA
CVGI	- 0.58	MPAA
MNRO	- 0.57	MPAA
SRI	- 0.54	PLOW
MNRO	- 0.47	PLOW
GNTX	- 0.43	PLOW

Risk-Adjusted Indicators

There is a big difference between Standard Stock performing well and Standard Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Standard's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DORM	1.22	(0.08)	0.00	(0.14)	0.00	0.00	2.60	(3.19)	7.99
MPAA	3.73	0.52	0.15	0.52	3.32	(4.90)	11.22	(5.33)	22.07
PLOW	1.25	0.00	0.00	(0.04)	0.00	0.00	2.37	(2.91)	9.53
SRI	3.66	(0.12)	0.00	(0.09)	0.00	0.00	6.68	(8.80)	31.78
MNRO	1.71	(0.61)	0.00	(1.04)	0.00	0.00	2.69	(4.22)	9.63
CPS	2.89	0.35	0.10	0.15	3.12	(3.46)	5.09	(5.36)	24.09
LEA	1.34	0.06	0.04	0.04	1.75	(1.27)	2.31	(2.67)	8.61
CVGI	3.00	(0.68)	0.00	(0.47)	0.00	0.00	6.39	(6.85)	22.75
GNTX	1.22	(0.29)	0.00	(0.47)	0.00	0.00	2.19	(2.29)	10.85

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