Correlation Between Far East and Saia
Can any of the company-specific risk be diversified away by investing in both Far East 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 Far East and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Far East Wind and Saia Inc, you can compare the effects of market volatilities on Far East 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 Far East with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Far East and Saia.
Diversification Opportunities for Far East and Saia
Pay attention - limited upside
The 3 months correlation between Far and Saia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Far East Wind and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Far East 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 Far East Wind 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 Far East i.e., Far East and Saia go up and down completely randomly.
Pair Corralation between Far East and Saia
If you would invest 47,699 in Saia Inc on August 30, 2024 and sell it today you would earn a total of 8,739 from holding Saia Inc or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Far East Wind vs. Saia Inc
Performance |
| Timeline |
| Far East Wind |
| Saia Inc |
Far East and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Far East and Saia
The main advantage of trading using opposite Far East and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Far East 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.| Far East vs. American Water Works | Far East vs. Middlesex Water | Far East vs. SJW Group Common | Far East vs. California Water Service |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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