Correlation Between Vista Outdoor and Superior Uniform

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

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

Diversification Opportunities for Vista Outdoor and Superior Uniform

0.0

Correlation Coefficient

Vista Outdoor  Superior Uniform

Pay attention - limited upside

The 3 months correlation between Vista and Superior is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vista Outdoor and Superior Uniform Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Uniform and Vista Outdoor 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 Vista Outdoor 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 Vista Outdoor i.e., Vista Outdoor and Superior Uniform go up and down completely randomly.

Pair Corralation between Vista Outdoor and Superior Uniform

If you would invest (100.00) in Vista Outdoor on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Vista Outdoor or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vista Outdoor  vs.  Superior Uniform Group

Vista Outdoor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vista Outdoor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Vista Outdoor is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the 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 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.

Pair Trading with Vista Outdoor and Superior Uniform

The main advantage of trading using opposite Vista Outdoor and Superior Uniform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Outdoor 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 Vista Outdoor 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.