Correlation Between Saia and Axalta Coating
Can any of the company-specific risk be diversified away by investing in both Saia and Axalta Coating 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 Saia and Axalta Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and Axalta Coating Systems, you can compare the effects of market volatilities on Saia and Axalta Coating 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 Saia with a short position of Axalta Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Axalta Coating.
Diversification Opportunities for Saia and Axalta Coating
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saia and Axalta is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Axalta Coating Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axalta Coating Systems and Saia 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 Saia Inc are associated (or correlated) with Axalta Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axalta Coating Systems has no effect on the direction of Saia i.e., Saia and Axalta Coating go up and down completely randomly.
Pair Corralation between Saia and Axalta Coating
Given the investment horizon of 90 days Saia Inc is expected to generate 2.51 times more return on investment than Axalta Coating. However, Saia is 2.51 times more volatile than Axalta Coating Systems. It trades about 0.23 of its potential returns per unit of risk. Axalta Coating Systems is currently generating about 0.22 per unit of risk. If you would invest 48,614 in Saia Inc on September 3, 2024 and sell it today you would earn a total of 8,294 from holding Saia Inc or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saia Inc vs. Axalta Coating Systems
Performance |
| Timeline |
| Saia Inc |
| Axalta Coating Systems |
Saia and Axalta Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Axalta Coating
The main advantage of trading using opposite Saia and Axalta Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Axalta Coating 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 Axalta Coating will offset losses from the drop in Axalta Coating's long position.The idea behind Saia Inc and Axalta Coating Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |