Correlation Between Saia and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Saia and Concrete Pumping 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 Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and Concrete Pumping Holdings, you can compare the effects of market volatilities on Saia and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Concrete Pumping.
Diversification Opportunities for Saia and Concrete Pumping
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saia and Concrete is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Saia i.e., Saia and Concrete Pumping go up and down completely randomly.
Pair Corralation between Saia and Concrete Pumping
If you would invest 47,938 in Saia Inc on August 29, 2024 and sell it today you would earn a total of 8,093 from holding Saia Inc or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Saia Inc vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Saia Inc |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saia and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Concrete Pumping
The main advantage of trading using opposite Saia and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.The idea behind Saia Inc and Concrete Pumping Holdings 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.| Concrete Pumping vs. SBM Offshore NV | Concrete Pumping vs. Saia Inc | Concrete Pumping vs. Kandi Technologies Group | Concrete Pumping vs. Digi International |
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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