Correlation Between JD Sports and Saia
Can any of the company-specific risk be diversified away by investing in both JD Sports 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 JD Sports and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Sports Fashion and Saia Inc, you can compare the effects of market volatilities on JD Sports 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 JD Sports with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Saia.
Diversification Opportunities for JD Sports and Saia
Excellent diversification
The 3 months correlation between JDSPY and Saia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and JD Sports 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 JD Sports Fashion 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 JD Sports i.e., JD Sports and Saia go up and down completely randomly.
Pair Corralation between JD Sports and Saia
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the Saia. In addition to that, JD Sports is 1.69 times more volatile than Saia Inc. It trades about -0.24 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.23 per unit of volatility. If you would invest 47,938 in Saia Inc on August 29, 2024 and sell it today you would earn a total of 8,658 from holding Saia Inc or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Saia Inc
Performance |
| Timeline |
| JD Sports Fashion |
| Saia Inc |
JD Sports and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Saia
The main advantage of trading using opposite JD Sports and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports 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.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| Saia vs. Knight Transportation | Saia vs. Universal Logistics Holdings | Saia vs. Heartland Express | Saia vs. Schneider National |
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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