Correlation Between Pineapple Financial and Saia

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

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

Diversification Opportunities for Pineapple Financial and Saia

-0.76

Correlation Coefficient

Pineapple Financial  Saia

Pay attention - limited upside

The 3 months correlation between Pineapple and Saia is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pineapple Financial and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Pineapple Financial 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 Pineapple Financial are associated (or correlated) with Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Pineapple Financial i.e., Pineapple Financial and Saia go up and down completely randomly.

Pair Corralation between Pineapple Financial and Saia

Given the investment horizon of 90 days Pineapple Financial is expected to under-perform the Saia. In addition to that, Pineapple Financial is 1.86 times more volatile than Saia Inc. It trades about -0.11 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.13 per unit of volatility. If you would invest  42,018  in Saia Inc on September 12, 2024 and sell it today you would earn a total of  10,279  from holding Saia Inc or generate 24.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Pineapple Financial  vs.  Saia Inc

Pineapple Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pineapple Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Saia Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Saia sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pineapple Financial and Saia

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

The idea behind Pineapple Financial and Saia Inc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.