Superior Industries International Stock Volatility
| SUP Stock | USD 3.81 0.17 4.27% |
Superior Industries appears to be moderately volatile, given 3 months investment horizon. Superior Industries owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.11, which indicates the firm had a 0.11% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Superior Industries International, which you can use to evaluate the volatility of the company. Please review Superior Industries' Semi Deviation of 2.87, coefficient of variation of 1266.41, and Risk Adjusted Performance of 0.0568 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Superior Industries' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Superior Industries Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Superior daily returns, and it is calculated using variance and standard deviation. We also use Superior's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Superior Industries volatility.
Superior |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Superior Industries can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Superior Industries at lower prices. For example, an investor can purchase Superior stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Superior Industries' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Superior Industries Market Sensitivity And Downside Risk
Superior Industries' beta coefficient measures the volatility of Superior stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Superior stock's returns against your selected market. In other words, Superior Industries's beta of 1.54 provides an investor with an approximation of how much risk Superior Industries stock can potentially add to one of your existing portfolios. Superior Industries International shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Superior Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Superior Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Superior Industries Demand TrendCheck current 90 days Superior Industries correlation with market (NYSE Composite)Superior Beta |
Superior standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 4.18 |
It is essential to understand the difference between upside risk (as represented by Superior Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Superior Industries' daily returns or price. Since the actual investment returns on holding a position in superior stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Superior Industries.
Using Superior Put Option to Manage Risk
Put options written on Superior Industries grant holders of the option the right to sell a specified amount of Superior Industries at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Superior Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Superior Industries' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Superior Industries will be realized, the loss incurred will be offset by the profits made with the option trade.
Superior Industries' PUT expiring on 2024-05-17
Profit |
| Superior Industries Price At Expiration |
Superior Industries Stock Volatility Analysis
Volatility refers to the frequency at which Superior Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Superior Industries' price changes. Investors will then calculate the volatility of Superior Industries' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Superior Industries' volatility:
Historical Volatility
This type of stock volatility measures Superior Industries' fluctuations based on previous trends. It's commonly used to predict Superior Industries' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Superior Industries' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Superior Industries' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Superior Industries Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Superior Industries Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.5397 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Superior Industries will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Superior Industries or Automobile Components sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Superior Industries' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Superior stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Superior Industries International has an alpha of 0.1996, implying that it can generate a 0.2 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Superior Industries Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Superior Industries Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Superior Industries is 924.67. The daily returns are distributed with a variance of 17.46 and standard deviation of 4.18. The mean deviation of Superior Industries International is currently at 2.82. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61
α | Alpha over NYSE Composite | 0.20 | |
β | Beta against NYSE Composite | 1.54 | |
σ | Overall volatility | 4.18 | |
Ir | Information ratio | 0.06 |
Superior Industries Stock Return Volatility
Superior Industries historical daily return volatility represents how much of Superior Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 4.1783% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6294% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Superior Industries Volatility
Volatility is a rate at which the price of Superior Industries or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Superior Industries may increase or decrease. In other words, similar to Superior's beta indicator, it measures the risk of Superior Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Superior Industries fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 104.8 M | 99.6 M |
Superior Industries' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Superior Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Superior Industries' price varies over time.
3 ways to utilize Superior Industries' volatility to invest better
Higher Superior Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Superior Industries stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Superior Industries stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Superior Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Superior Industries' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Superior Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Superior Industries Investment Opportunity
Superior Industries International has a volatility of 4.18 and is 6.63 times more volatile than NYSE Composite. 36 percent of all equities and portfolios are less risky than Superior Industries. You can use Superior Industries International to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Superior Industries to be traded at $3.62 in 90 days.Modest diversification
The correlation between Superior Industries Internatio and NYA is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Superior Industries Internatio and NYA in the same portfolio, assuming nothing else is changed.
Superior Industries Additional Risk Indicators
The analysis of Superior Industries' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Superior Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Superior Industries stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0568 | |||
| Market Risk Adjusted Performance | 0.215 | |||
| Mean Deviation | 2.81 | |||
| Semi Deviation | 2.87 | |||
| Downside Deviation | 3.27 | |||
| Coefficient Of Variation | 1266.41 | |||
| Standard Deviation | 4.12 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Superior Industries Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Superior Industries as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Superior Industries' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Superior Industries' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Superior Industries International.
When determining whether Superior Industries is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Superior Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Superior Industries International Stock. Highlighted below are key reports to facilitate an investment decision about Superior Industries International Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Superior Industries International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Complementary Tools for Superior Stock analysis
When running Superior Industries' price analysis, check to measure Superior Industries' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Superior Industries is operating at the current time. Most of Superior Industries' value examination focuses on studying past and present price action to predict the probability of Superior Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Superior Industries' price. Additionally, you may evaluate how the addition of Superior Industries to your portfolios can decrease your overall portfolio volatility.
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Is Superior Industries' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Superior Industries. If investors know Superior will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Superior Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.78) | Earnings Share (4.73) | Revenue Per Share 49.684 | Quarterly Revenue Growth (0.23) | Return On Assets 0.0208 |
The market value of Superior Industries is measured differently than its book value, which is the value of Superior that is recorded on the company's balance sheet. Investors also form their own opinion of Superior Industries' value that differs from its market value or its book value, called intrinsic value, which is Superior Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Superior Industries' market value can be influenced by many factors that don't directly affect Superior Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Superior Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Superior Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Superior Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.