Correlation Between Saia and Barrick Gold

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

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

Diversification Opportunities for Saia and Barrick Gold

-0.75

Correlation Coefficient

Saia  Barrick Gold

Pay attention - limited upside

The 3 months correlation between Saia and Barrick is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Saia i.e., Saia and Barrick Gold go up and down completely randomly.

Pair Corralation between Saia and Barrick Gold

Given the investment horizon of 90 days Saia Inc is expected to under-perform the Barrick Gold. In addition to that, Saia is 1.59 times more volatile than Barrick Gold Corp. It trades about -0.1 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.23 per unit of volatility. If you would invest  1,537  in Barrick Gold Corp on December 28, 2024 and sell it today you would earn a total of  419.00  from holding Barrick Gold Corp or generate 27.26% return on investment over 90 days.

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

Saia Inc  vs.  Barrick Gold Corp

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.

Barrick Gold Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Barrick Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saia and Barrick Gold

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

The idea behind Saia Inc and Barrick Gold Corp 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.