Correlation Between Yuexiu Transport and Saia
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Saia Inc, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Saia.
Diversification Opportunities for Yuexiu Transport and Saia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuexiu and Saia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Saia go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Saia
Assuming the 90 days horizon Yuexiu Transport is expected to generate 1.03 times less return on investment than Saia. In addition to that, Yuexiu Transport is 1.38 times more volatile than Saia Inc. It trades about 0.23 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.32 per unit of volatility. If you would invest 41,289 in Saia Inc on August 24, 2024 and sell it today you would earn a total of 13,630 from holding Saia Inc or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Saia Inc
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Saia Inc |
Yuexiu Transport and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Saia
The main advantage of trading using opposite Yuexiu Transport and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. Aquagold International | Yuexiu Transport vs. Barloworld Ltd ADR |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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