Correlation Between Procter Gamble and Saia
Can any of the company-specific risk be diversified away by investing in both Procter Gamble 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 Procter Gamble and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Saia Inc, you can compare the effects of market volatilities on Procter Gamble 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 Procter Gamble with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Saia.
Diversification Opportunities for Procter Gamble and Saia
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Saia is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Procter Gamble 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 Procter Gamble 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 Procter Gamble i.e., Procter Gamble and Saia go up and down completely randomly.
Pair Corralation between Procter Gamble and Saia
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 15.37 times less return on investment than Saia. But when comparing it to its historical volatility, Procter Gamble is 3.81 times less risky than Saia. It trades about 0.08 of its potential returns per unit of risk. Saia Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Saia Inc
Performance |
| Timeline |
| Procter Gamble |
| Saia Inc |
Procter Gamble and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Saia
The main advantage of trading using opposite Procter Gamble and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble 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.| Procter Gamble vs. Eshallgo Class A | Procter Gamble vs. Amtech Systems | Procter Gamble vs. Gold Fields Ltd | Procter Gamble vs. Aegean Airlines SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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