Correlation Between Saia and Entegris

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

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

Diversification Opportunities for Saia and Entegris

-0.44

Correlation Coefficient

Saia  Entegris

Very good diversification

The 3 months correlation between Saia and Entegris is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Saia i.e., Saia and Entegris go up and down completely randomly.

Pair Corralation between Saia and Entegris

Given the investment horizon of 90 days Saia Inc is expected to generate 1.24 times more return on investment than Entegris. However, Saia is 1.24 times more volatile than Entegris. It trades about 0.18 of its potential returns per unit of risk. Entegris is currently generating about 0.0 per unit of risk. If you would invest  39,837  in Saia Inc on September 5, 2024 and sell it today you would earn a total of  14,960  from holding Saia Inc or generate 37.55% return on investment over 90 days.

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

Saia Inc  vs.  Entegris

Saia Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 14 (%) 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.

Entegris

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Saia and Entegris

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

The idea behind Saia Inc and Entegris 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 Transaction History module to view history of all your transactions and understand their impact on performance.