Correlation Between Oxford Industries and Superior Uniform

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

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

Diversification Opportunities for Oxford Industries and Superior Uniform

0.41

Correlation Coefficient

Oxford Industries  Superior Uniform

Very weak diversification

The 3 months correlation between Oxford and Superior is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Industries and Superior Uniform Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Uniform and Oxford 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 Oxford Industries are associated (or correlated) with Superior Uniform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Uniform has no effect on the direction of Oxford Industries i.e., Oxford Industries and Superior Uniform go up and down completely randomly.

Pair Corralation between Oxford Industries and Superior Uniform

Considering the 90-day investment horizon Oxford Industries is expected to under-perform the Superior Uniform. In addition to that, Oxford Industries is 1.47 times more volatile than Superior Uniform Group. It trades about -0.11 of its total potential returns per unit of risk. Superior Uniform Group is currently generating about -0.1 per unit of volatility. If you would invest  1,677  in Superior Uniform Group on November 28, 2024 and sell it today you would lose (189.00) from holding Superior Uniform Group or give up 11.27% of portfolio value over 90 days.

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

Oxford Industries  vs.  Superior Uniform Group

Oxford Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxford Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Superior Uniform

Risk-Adjusted Performance

Very Weak

Over the last 90 days Superior Uniform Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Oxford Industries and Superior Uniform

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

The idea behind Oxford Industries and Superior Uniform Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.