Correlation Between Highway Holdings and Saia
Can any of the company-specific risk be diversified away by investing in both Highway Holdings 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 Highway Holdings and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Holdings Limited and Saia Inc, you can compare the effects of market volatilities on Highway Holdings 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 Highway Holdings with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Saia.
Diversification Opportunities for Highway Holdings and Saia
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highway and Saia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Highway Holdings 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 Highway Holdings Limited 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 Highway Holdings i.e., Highway Holdings and Saia go up and down completely randomly.
Pair Corralation between Highway Holdings and Saia
Given the investment horizon of 90 days Highway Holdings is expected to generate 4.58 times less return on investment than Saia. But when comparing it to its historical volatility, Highway Holdings Limited is 1.21 times less risky than Saia. It trades about 0.01 of its potential returns per unit of risk. Saia Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 43,822 in Saia Inc on August 25, 2024 and sell it today you would earn a total of 10,347 from holding Saia Inc or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.13% |
| Values | Daily Returns |
Highway Holdings Limited vs. Saia Inc
Performance |
| Timeline |
| Highway Holdings |
| Saia Inc |
Highway Holdings and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Saia
The main advantage of trading using opposite Highway Holdings and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings 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.| Highway Holdings vs. CompoSecure | Highway Holdings vs. Dave Warrants | Highway Holdings vs. Evolv Technologies Holdings | Highway Holdings vs. Aquagold International |
| Saia vs. Old Dominion Freight | Saia vs. ArcBest Corp | Saia vs. Werner Enterprises | Saia vs. Knight Transportation |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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