Correlation Between Saia and CAVA Group,

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

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

Diversification Opportunities for Saia and CAVA Group,

0.93

Correlation Coefficient

Saia  CAVA Group,

Almost no diversification

The 3 months correlation between Saia and CAVA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Saia i.e., Saia and CAVA Group, go up and down completely randomly.

Pair Corralation between Saia and CAVA Group,

Given the investment horizon of 90 days Saia Inc is expected to generate 0.74 times more return on investment than CAVA Group,. However, Saia Inc is 1.36 times less risky than CAVA Group,. It trades about -0.12 of its potential returns per unit of risk. CAVA Group, is currently generating about -0.09 per unit of risk. If you would invest  47,617  in Saia Inc on December 26, 2024 and sell it today you would lose (9,768) from holding Saia Inc or give up 20.51% of portfolio value over 90 days.

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

Saia Inc  vs.  CAVA Group,

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.

CAVA Group,

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAVA Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic 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 Saia and CAVA Group,

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

The idea behind Saia Inc and CAVA Group, 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.

Check out your portfolio center.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.