Correlation Between 65339KCP3 and Saia

Can any of the company-specific risk be diversified away by investing in both 65339KCP3 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 65339KCP3 and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NEE 505 28 FEB 33 and Saia Inc, you can compare the effects of market volatilities on 65339KCP3 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 65339KCP3 with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 65339KCP3 and Saia.

Diversification Opportunities for 65339KCP3 and Saia

0.29

Correlation Coefficient

65339KCP3  Saia

Modest diversification

The 3 months correlation between 65339KCP3 and Saia is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding NEE 505 28 FEB 33 and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and 65339KCP3 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 NEE 505 28 FEB 33 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 65339KCP3 i.e., 65339KCP3 and Saia go up and down completely randomly.

Pair Corralation between 65339KCP3 and Saia

Assuming the 90 days trading horizon NEE 505 28 FEB 33 is expected to generate 0.17 times more return on investment than Saia. However, NEE 505 28 FEB 33 is 5.92 times less risky than Saia. It trades about 0.03 of its potential returns per unit of risk. Saia Inc is currently generating about -0.15 per unit of risk. If you would invest  10,071  in NEE 505 28 FEB 33 on December 5, 2024 and sell it today you would earn a total of  94.00  from holding NEE 505 28 FEB 33 or generate 0.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

NEE 505 28 FEB 33  vs.  Saia Inc

NEE 505 28

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NEE 505 28 FEB 33 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 65339KCP3 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

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.

Pair Trading with 65339KCP3 and Saia

The main advantage of trading using opposite 65339KCP3 and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 65339KCP3 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 NEE 505 28 FEB 33 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.