Correlation Between Saia and CI Financial
Can any of the company-specific risk be diversified away by investing in both Saia and CI Financial 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 CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and CI Financial Corp, you can compare the effects of market volatilities on Saia and CI Financial 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 CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and CI Financial.
Diversification Opportunities for Saia and CI Financial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saia and CIXXF is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp 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 CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Saia i.e., Saia and CI Financial go up and down completely randomly.
Pair Corralation between Saia and CI Financial
If you would invest 47,938 in Saia Inc on August 28, 2024 and sell it today you would earn a total of 7,789 from holding Saia Inc or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Saia Inc vs. CI Financial Corp
Performance |
| Timeline |
| Saia Inc |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saia and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and CI Financial
The main advantage of trading using opposite Saia and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, CI Financial 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 CI Financial will offset losses from the drop in CI Financial's long position.The idea behind Saia Inc and CI Financial Corp 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.| CI Financial vs. Western Digital | CI Financial vs. JD Sports Fashion | CI Financial vs. Saia Inc | CI Financial vs. Casio Computer Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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