Correlation Between 694308JT5 and Saia

Can any of the company-specific risk be diversified away by investing in both 694308JT5 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 694308JT5 and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 325 01 JUN 31 and Saia Inc, you can compare the effects of market volatilities on 694308JT5 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 694308JT5 with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308JT5 and Saia.

Diversification Opportunities for 694308JT5 and Saia

-0.58

Correlation Coefficient

694308JT5  Saia

Excellent diversification

The 3 months correlation between 694308JT5 and Saia is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PCG 325 01 JUN 31 and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and 694308JT5 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 PCG 325 01 JUN 31 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 694308JT5 i.e., 694308JT5 and Saia go up and down completely randomly.

Pair Corralation between 694308JT5 and Saia

Assuming the 90 days trading horizon PCG 325 01 JUN 31 is expected to generate 0.38 times more return on investment than Saia. However, PCG 325 01 JUN 31 is 2.63 times less risky than Saia. It trades about -0.18 of its potential returns per unit of risk. Saia Inc is currently generating about -0.3 per unit of risk. If you would invest  8,934  in PCG 325 01 JUN 31 on September 23, 2024 and sell it today you would lose (285.00) from holding PCG 325 01 JUN 31 or give up 3.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

PCG 325 01 JUN 31  vs.  Saia Inc

PCG 325 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PCG 325 01 JUN 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 694308JT5 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

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward indicators, Saia may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with 694308JT5 and Saia

The main advantage of trading using opposite 694308JT5 and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308JT5 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 PCG 325 01 JUN 31 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.