Correlation Between Saia and Brookfield Property

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

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

Diversification Opportunities for Saia and Brookfield Property

-0.17

Correlation Coefficient

Saia  Brookfield Property

Good diversification

The 3 months correlation between Saia and Brookfield is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and Saia 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 Saia Inc are associated (or correlated) with Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of Saia i.e., Saia and Brookfield Property go up and down completely randomly.

Pair Corralation between Saia and Brookfield Property

Given the investment horizon of 90 days Saia Inc is expected to generate 1.73 times more return on investment than Brookfield Property. However, Saia is 1.73 times more volatile than Brookfield Property Partners. It trades about 0.11 of its potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.08 per unit of risk. If you would invest  43,249  in Saia Inc on September 13, 2024 and sell it today you would earn a total of  8,777  from holding Saia Inc or generate 20.29% return on investment over 90 days.

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

Saia Inc  vs.  Brookfield Property Partners

Saia Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Saia sustained solid returns over the last few months and may actually be approaching a breakup point.

Brookfield Property

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Property Partners are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Brookfield Property may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Saia and Brookfield Property

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

The idea behind Saia Inc and Brookfield Property Partners 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.

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.