Correlation Between Superior Industries and Thor Industries

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

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

Diversification Opportunities for Superior Industries and Thor Industries

-0.29

Correlation Coefficient

Superior Industries  Thor Industries

Very good diversification

The 3 months correlation between Superior and Thor is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Superior Industries Internatio and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and Superior 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 Superior Industries International are associated (or correlated) with Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Superior Industries i.e., Superior Industries and Thor Industries go up and down completely randomly.

Pair Corralation between Superior Industries and Thor Industries

Considering the 90-day investment horizon Superior Industries International is expected to under-perform the Thor Industries. In addition to that, Superior Industries is 7.35 times more volatile than Thor Industries. It trades about -0.28 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.21 per unit of volatility. If you would invest  7,340  in Thor Industries on May 7, 2025 and sell it today you would earn a total of  2,073  from holding Thor Industries or generate 28.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Superior Industries Internatio  vs.  Thor Industries

Superior Industries

Risk-Adjusted Performance

Weakest

Over the last 90 days Superior Industries International has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Thor Industries

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Industries are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, Thor Industries displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Superior Industries and Thor Industries

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

The idea behind Superior Industries International and Thor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.