Correlation Between Saia and NESNVX

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

By analyzing existing cross correlation between Saia Inc and NESNVX 115 14 JAN 27, you can compare the effects of market volatilities on Saia and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and NESNVX.

Diversification Opportunities for Saia and NESNVX

0.8

Correlation Coefficient

Saia  NESNVX

Very poor diversification

The 3 months correlation between Saia and NESNVX is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and NESNVX 115 14 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 115 14 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 115 14 has no effect on the direction of Saia i.e., Saia and NESNVX go up and down completely randomly.

Pair Corralation between Saia and NESNVX

Given the investment horizon of 90 days Saia Inc is expected to under-perform the NESNVX. In addition to that, Saia is 1.46 times more volatile than NESNVX 115 14 JAN 27. It trades about -0.43 of its total potential returns per unit of risk. NESNVX 115 14 JAN 27 is currently generating about 0.03 per unit of volatility. If you would invest  9,348  in NESNVX 115 14 JAN 27 on September 30, 2024 and sell it today you would earn a total of  30.00  from holding NESNVX 115 14 JAN 27 or generate 0.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	42.86%
Values	Daily Returns

Saia Inc  vs.  NESNVX 115 14 JAN 27

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.

NESNVX 115 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 115 14 JAN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Saia and NESNVX

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

The idea behind Saia Inc and NESNVX 115 14 JAN 27 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.