Correlation Between 26442CAN4 and Saia

Can any of the company-specific risk be diversified away by investing in both 26442CAN4 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 26442CAN4 and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY CAROLINAS and Saia Inc, you can compare the effects of market volatilities on 26442CAN4 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 26442CAN4 with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442CAN4 and Saia.

Diversification Opportunities for 26442CAN4 and Saia

-0.41

Correlation Coefficient

26442CAN4  Saia

Very good diversification

The 3 months correlation between 26442CAN4 and Saia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY CAROLINAS and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and 26442CAN4 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 DUKE ENERGY CAROLINAS 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 26442CAN4 i.e., 26442CAN4 and Saia go up and down completely randomly.

Pair Corralation between 26442CAN4 and Saia

Assuming the 90 days trading horizon DUKE ENERGY CAROLINAS is expected to generate 0.47 times more return on investment than Saia. However, DUKE ENERGY CAROLINAS is 2.15 times less risky than Saia. It trades about -0.28 of its potential returns per unit of risk. Saia Inc is currently generating about -0.25 per unit of risk. If you would invest  8,504  in DUKE ENERGY CAROLINAS on October 10, 2024 and sell it today you would lose (410.00) from holding DUKE ENERGY CAROLINAS or give up 4.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	80.0%
Values	Daily Returns

DUKE ENERGY CAROLINAS  vs.  Saia Inc

DUKE ENERGY CAROLINAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUKE ENERGY CAROLINAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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 DUKE ENERGY CAROLINAS investors.

Saia Inc

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 2 (%) 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 February 2025.

Pair Trading with 26442CAN4 and Saia

The main advantage of trading using opposite 26442CAN4 and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442CAN4 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 DUKE ENERGY CAROLINAS 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.

Check out your portfolio center.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.