Correlation Between 04686E2Y7 and Saia

Can any of the company-specific risk be diversified away by investing in both 04686E2Y7 and Saia 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 04686E2Y7 and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATH 25 24 MAR 28 and Saia Inc, you can compare the effects of market volatilities on 04686E2Y7 and Saia 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 04686E2Y7 with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 04686E2Y7 and Saia.

Diversification Opportunities for 04686E2Y7 and Saia

0.39

Correlation Coefficient

04686E2Y7  Saia

Weak diversification

The 3 months correlation between 04686E2Y7 and Saia is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ATH 25 24 MAR 28 and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and 04686E2Y7 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 ATH 25 24 MAR 28 are associated (or correlated) with Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of 04686E2Y7 i.e., 04686E2Y7 and Saia go up and down completely randomly.

Pair Corralation between 04686E2Y7 and Saia

Assuming the 90 days trading horizon 04686E2Y7 is expected to generate 3.5 times less return on investment than Saia. But when comparing it to its historical volatility, ATH 25 24 MAR 28 is 1.71 times less risky than Saia. It trades about 0.03 of its potential returns per unit of risk. Saia Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  24,892  in Saia Inc on October 11, 2024 and sell it today you would earn a total of  19,930  from holding Saia Inc or generate 80.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	16.77%
Values	Daily Returns

ATH 25 24 MAR 28  vs.  Saia Inc

ATH 25 24

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 25 24 MAR 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ATH 25 24 MAR 28 investors.

Saia Inc

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Saia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Saia is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 04686E2Y7 and Saia

The main advantage of trading using opposite 04686E2Y7 and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 04686E2Y7 position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.

The idea behind ATH 25 24 MAR 28 and Saia Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.