Correlation Between INTNED and Saia

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

By analyzing existing cross correlation between INTNED 61032 28 MAR 26 and Saia Inc, you can compare the effects of market volatilities on INTNED 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 INTNED with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Saia.

Diversification Opportunities for INTNED and Saia

-0.04

Correlation Coefficient

INTNED  Saia

Good diversification

The 3 months correlation between INTNED and Saia is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 61032 28 MAR 26 and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and INTNED 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 INTNED 61032 28 MAR 26 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 INTNED i.e., INTNED and Saia go up and down completely randomly.

Pair Corralation between INTNED and Saia

Assuming the 90 days trading horizon INTNED 61032 28 MAR 26 is expected to generate 0.65 times more return on investment than Saia. However, INTNED 61032 28 MAR 26 is 1.53 times less risky than Saia. It trades about -0.15 of its potential returns per unit of risk. Saia Inc is currently generating about -0.44 per unit of risk. If you would invest  10,038  in INTNED 61032 28 MAR 26 on September 24, 2024 and sell it today you would lose (132.00) from holding INTNED 61032 28 MAR 26 or give up 1.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	33.33%
Values	Daily Returns

INTNED 61032 28 MAR 26  vs.  Saia Inc

INTNED 61032 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 61032 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saia Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 INTNED and Saia

The main advantage of trading using opposite INTNED and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED 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 INTNED 61032 28 MAR 26 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.