Correlation Between Saia and 575718AG6

Can any of the company-specific risk be diversified away by investing in both Saia and 575718AG6 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 575718AG6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saia Inc and US575718AG63, you can compare the effects of market volatilities on Saia and 575718AG6 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 575718AG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and 575718AG6.

Diversification Opportunities for Saia and 575718AG6

-0.29

Correlation Coefficient

Saia  575718AG6

Very good diversification

The 3 months correlation between Saia and 575718AG6 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and US575718AG63 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US575718AG63 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 575718AG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US575718AG63 has no effect on the direction of Saia i.e., Saia and 575718AG6 go up and down completely randomly.

Pair Corralation between Saia and 575718AG6

Given the investment horizon of 90 days Saia Inc is expected to generate 2.06 times more return on investment than 575718AG6. However, Saia is 2.06 times more volatile than US575718AG63. It trades about 0.02 of its potential returns per unit of risk. US575718AG63 is currently generating about -0.08 per unit of risk. If you would invest  45,870  in Saia Inc on September 25, 2024 and sell it today you would earn a total of  1,253  from holding Saia Inc or generate 2.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.38%
Values	Daily Returns

Saia Inc  vs.  US575718AG63

Saia Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Saia is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

US575718AG63

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US575718AG63 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for US575718AG63 investors.

Pair Trading with Saia and 575718AG6

The main advantage of trading using opposite Saia and 575718AG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, 575718AG6 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 575718AG6 will offset losses from the drop in 575718AG6's long position.

The idea behind Saia Inc and US575718AG63 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.