Correlation Between Saia and BBVASM

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

By analyzing existing cross correlation between Saia Inc and BBVASM 1875 18 SEP 25, you can compare the effects of market volatilities on Saia and BBVASM 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 BBVASM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and BBVASM.

Diversification Opportunities for Saia and BBVASM

0.17

Correlation Coefficient

Saia  BBVASM

Average diversification

The 3 months correlation between Saia and BBVASM is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and BBVASM 1875 18 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVASM 1875 18 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 BBVASM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVASM 1875 18 has no effect on the direction of Saia i.e., Saia and BBVASM go up and down completely randomly.

Pair Corralation between Saia and BBVASM

Given the investment horizon of 90 days Saia Inc is expected to generate 4.93 times more return on investment than BBVASM. However, Saia is 4.93 times more volatile than BBVASM 1875 18 SEP 25. It trades about 0.04 of its potential returns per unit of risk. BBVASM 1875 18 SEP 25 is currently generating about 0.01 per unit of risk. If you would invest  27,841  in Saia Inc on December 5, 2024 and sell it today you would earn a total of  11,193  from holding Saia Inc or generate 40.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	48.28%
Values	Daily Returns

Saia Inc  vs.  BBVASM 1875 18 SEP 25

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.

BBVASM 1875 18

Risk-Adjusted Performance

Very Weak

Over the last 90 days BBVASM 1875 18 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for BBVASM 1875 18 SEP 25 investors.

Pair Trading with Saia and BBVASM

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

The idea behind Saia Inc and BBVASM 1875 18 SEP 25 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.