Correlation Between Saia and Cellebrite

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

By analyzing existing cross correlation between Saia Inc and Cellebrite DI Equity, you can compare the effects of market volatilities on Saia and Cellebrite 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 Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Cellebrite.

Diversification Opportunities for Saia and Cellebrite

0.82

Correlation Coefficient

Saia  Cellebrite

Very poor diversification

The 3 months correlation between Saia and Cellebrite is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI Equity has no effect on the direction of Saia i.e., Saia and Cellebrite go up and down completely randomly.

Pair Corralation between Saia and Cellebrite

Given the investment horizon of 90 days Saia Inc is expected to generate 0.46 times more return on investment than Cellebrite. However, Saia Inc is 2.2 times less risky than Cellebrite. It trades about 0.11 of its potential returns per unit of risk. Cellebrite DI Equity is currently generating about -0.58 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  8,898  from holding Saia Inc or generate 20.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	4.76%
Values	Daily Returns

Saia Inc  vs.  Cellebrite DI Equity

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.

Cellebrite DI Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cellebrite DI Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Saia and Cellebrite

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

The idea behind Saia Inc and Cellebrite DI Equity 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.