Correlation Between Superior Uniform and Lakeland Industries

Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Lakeland 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 Superior Uniform and Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on Superior Uniform and Lakeland 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 Superior Uniform with a short position of Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Lakeland Industries.

Diversification Opportunities for Superior Uniform and Lakeland Industries

-0.39

Correlation Coefficient

Superior Uniform  Lakeland Industries

Very good diversification

The 3 months correlation between Superior and Lakeland is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Superior Uniform i.e., Superior Uniform and Lakeland Industries go up and down completely randomly.

Pair Corralation between Superior Uniform and Lakeland Industries

Considering the 90-day investment horizon Superior Uniform Group is expected to generate 0.53 times more return on investment than Lakeland Industries. However, Superior Uniform Group is 1.89 times less risky than Lakeland Industries. It trades about -0.04 of its potential returns per unit of risk. Lakeland Industries is currently generating about -0.05 per unit of risk. If you would invest  1,033  in Superior Uniform Group on May 8, 2025 and sell it today you would lose (75.00) from holding Superior Uniform Group or give up 7.26% of portfolio value over 90 days.

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

Superior Uniform Group  vs.  Lakeland Industries

Superior Uniform

Risk-Adjusted Performance

Weakest

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 rather sound technical and fundamental indicators, Superior Uniform is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Lakeland Industries

Risk-Adjusted Performance

Weakest

Over the last 90 days Lakeland 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 forward-looking signals remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Superior Uniform and Lakeland Industries

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

The idea behind Superior Uniform Group and Lakeland Industries 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.