Correlation Between Schneider National and Saia

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

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

Diversification Opportunities for Schneider National and Saia

0.93

Correlation Coefficient

Schneider National  Saia

Almost no diversification

The 3 months correlation between Schneider and Saia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Schneider National and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Schneider National 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 Schneider National 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 Schneider National i.e., Schneider National and Saia go up and down completely randomly.

Pair Corralation between Schneider National and Saia

Given the investment horizon of 90 days Schneider National is expected to under-perform the Saia. But the stock apears to be less risky and, when comparing its historical volatility, Schneider National is 1.1 times less risky than Saia. The stock trades about -0.03 of its potential returns per unit of risk. The Saia Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  51,817  in Saia Inc on September 19, 2024 and sell it today you would earn a total of  1,466  from holding Saia Inc or generate 2.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Schneider National  vs.  Saia Inc

Schneider National

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Schneider National are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Schneider National is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Saia Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 7 (%) 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.

Pair Trading with Schneider National and Saia

The main advantage of trading using opposite Schneider National and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider National 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 Schneider National 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 Global Correlations module to find global opportunities by holding instruments from different markets.