Standard Correlations

Stocks . USA . 
Stock . Standard Motor Products
SMP Stock  USD 30.31  0.62  2.00%   
The current 90-days correlation between Standard Motor Products and Dorman Products is 0.55 (i.e., Very weak 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 0.35 (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

  0.69F Ford Motor Earnings Call TodayPairCorr
  0.84VC Visteon CorpPairCorr
  0.83AXL American Axle ManufaPairCorr
  0.74BWA BorgWarnerPairCorr
  0.77MGA Magna InternationalPairCorr
  0.69THO Thor Industries Earnings Call This WeekPairCorr
  0.64GNTX GentexPairCorr
  0.69MULN Mullen Automotive Upward RallyPairCorr
  0.66NWTN NWTN Class BPairCorr
  0.84ADNT Adient PLCPairCorr
  0.81BC BrunswickPairCorr
  0.71HD Home DepotPairCorr

Moving against Standard Stock

  0.68LCID Lucid GroupPairCorr
  0.66INVZ Innoviz Technologies Earnings Call TodayPairCorr
  0.63SES SES AI CorpPairCorr
  0.35LI Li Auto TrendingPairCorr
  0.32QS Quantumscape CorpPairCorr
  0.53GV Visionary EducationPairCorr
  0.51APTV Aptiv PLCPairCorr
  0.4XOSWW Xos Equity WarrantsPairCorr
  0.33BH Biglari HoldingsPairCorr
  0.84VNCE Vince Holding CorpPairCorr
  0.55JL J Long GroupPairCorr
  0.41TH Target Hospitality CorpPairCorr
  0.4RL Ralph Lauren CorpPairCorr

Related Correlations Analysis

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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
+ 0.96
SRI
MNRO
+ 0.93
SRI
GNTX
+ 0.93
MNRO
CVGI
+ 0.9
SRI
CVGI
+ 0.87
MNRO
GNTX
+ 0.87
CVGI
  
High negative correlations   
SRI
- 0.34
PLOW
MNRO
- 0.27
PLOW
CVGI
- 0.26
PLOW
GNTX
- 0.25
MPAA
GNTX
- 0.23
PLOW
SRI
- 0.21
MPAA

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.

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