Correlation Between KVH Industries and Saia
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Saia Inc, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Saia.
Diversification Opportunities for KVH Industries and Saia
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KVH and Saia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and Saia go up and down completely randomly.
Pair Corralation between KVH Industries and Saia
Given the investment horizon of 90 days KVH Industries is expected to generate 0.41 times more return on investment than Saia. However, KVH Industries is 2.42 times less risky than Saia. It trades about 0.01 of its potential returns per unit of risk. Saia Inc is currently generating about -0.25 per unit of risk. If you would invest 588.00 in KVH Industries on November 29, 2024 and sell it today you would earn a total of 0.00 from holding KVH Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Saia Inc
Performance |
| Timeline |
| KVH Industries |
| Saia Inc |
KVH Industries and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Saia
The main advantage of trading using opposite KVH Industries and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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