Correlation Between Superior Uniform and Vince Holding

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

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

Diversification Opportunities for Superior Uniform and Vince Holding

0.83

Correlation Coefficient

Superior Uniform  Vince Holding

Very poor diversification

The 3 months correlation between Superior and Vince is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding Corp and Superior Uniform 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 Uniform Group are associated (or correlated) with Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of Superior Uniform i.e., Superior Uniform and Vince Holding go up and down completely randomly.

Pair Corralation between Superior Uniform and Vince Holding

Considering the 90-day investment horizon Superior Uniform Group is expected to generate 0.27 times more return on investment than Vince Holding. However, Superior Uniform Group is 3.7 times less risky than Vince Holding. It trades about -0.2 of its potential returns per unit of risk. Vince Holding Corp is currently generating about -0.07 per unit of risk. If you would invest  1,596  in Superior Uniform Group on December 29, 2024 and sell it today you would lose (494.00) from holding Superior Uniform Group or give up 30.95% of portfolio value over 90 days.

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

Superior Uniform Group  vs.  Vince Holding Corp

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Vince Holding Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vince Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Superior Uniform and Vince Holding

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

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