Correlation Between ZEEKR Intelligent and Superior Industries

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

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

Diversification Opportunities for ZEEKR Intelligent and Superior Industries

0.1

Correlation Coefficient

ZEEKR Intelligent  Superior Industries

Average diversification

The 3 months correlation between ZEEKR and Superior is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with Superior Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Industries has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Superior Industries go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and Superior Industries

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the Superior Industries. But the stock apears to be less risky and, when comparing its historical volatility, ZEEKR Intelligent Technology is 1.04 times less risky than Superior Industries. The stock trades about -0.02 of its potential returns per unit of risk. The Superior Industries International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  200.00  in Superior Industries International on December 28, 2024 and sell it today you would earn a total of  40.00  from holding Superior Industries International or generate 20.0% return on investment over 90 days.

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

ZEEKR Intelligent Technology  vs.  Superior Industries Internatio

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Superior Industries

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Superior Industries International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Superior Industries reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ZEEKR Intelligent and Superior Industries

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

The idea behind ZEEKR Intelligent Technology and Superior Industries International 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.