Correlation Between Saia and BOS Better

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

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

Diversification Opportunities for Saia and BOS Better

0.67

Correlation Coefficient

Saia  BOS Better

Poor diversification

The 3 months correlation between Saia and BOS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online 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 BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Saia i.e., Saia and BOS Better go up and down completely randomly.

Pair Corralation between Saia and BOS Better

Given the investment horizon of 90 days Saia Inc is expected to under-perform the BOS Better. In addition to that, Saia is 1.37 times more volatile than BOS Better Online. It trades about -0.4 of its total potential returns per unit of risk. BOS Better Online is currently generating about -0.08 per unit of volatility. If you would invest  338.00  in BOS Better Online on September 27, 2024 and sell it today you would lose (9.00) from holding BOS Better Online or give up 2.66% of portfolio value over 90 days.

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

Saia Inc  vs.  BOS Better Online

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.

BOS Better Online

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BOS Better Online are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, BOS Better may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Saia and BOS Better

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

The idea behind Saia Inc and BOS Better Online 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.