Correlation Between Joint Corp and Saia

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

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

Diversification Opportunities for Joint Corp and Saia

-0.09

Correlation Coefficient

Joint Corp  Saia

Good diversification

The 3 months correlation between Joint and Saia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Joint Corp 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 The Joint Corp 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 Joint Corp i.e., Joint Corp and Saia go up and down completely randomly.

Pair Corralation between Joint Corp and Saia

Given the investment horizon of 90 days The Joint Corp is expected to generate 0.82 times more return on investment than Saia. However, The Joint Corp is 1.22 times less risky than Saia. It trades about 0.17 of its potential returns per unit of risk. Saia Inc is currently generating about -0.12 per unit of risk. If you would invest  1,018  in The Joint Corp on December 26, 2024 and sell it today you would earn a total of  253.00  from holding The Joint Corp or generate 24.85% return on investment over 90 days.

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

The Joint Corp  vs.  Saia Inc

Joint Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Joint Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Joint Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Saia Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Joint Corp and Saia

The main advantage of trading using opposite Joint Corp and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Corp 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 The Joint Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..