Correlation Between Canlan Ice and Saia

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

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

Diversification Opportunities for Canlan Ice and Saia

0.23

Correlation Coefficient

Canlan Ice  Saia

Modest diversification

The 3 months correlation between Canlan and Saia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Saia go up and down completely randomly.

Pair Corralation between Canlan Ice and Saia

Assuming the 90 days horizon Canlan Ice is expected to generate 9.56 times less return on investment than Saia. But when comparing it to its historical volatility, Canlan Ice Sports is 31.21 times less risky than Saia. It trades about 0.13 of its potential returns per unit of risk. Saia Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  38,306  in Saia Inc on October 1, 2024 and sell it today you would earn a total of  9,225  from holding Saia Inc or generate 24.08% return on investment over 90 days.

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

Canlan Ice Sports  vs.  Saia Inc

Canlan Ice Sports

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canlan Ice Sports has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Canlan Ice is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Saia Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Saia may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Canlan Ice and Saia

The main advantage of trading using opposite Canlan Ice and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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 Canlan Ice Sports 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.