Correlation Between Saia and Corus Entertainment
Can any of the company-specific risk be diversified away by investing in both Saia and Corus Entertainment 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 Corus Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and Corus Entertainment, you can compare the effects of market volatilities on Saia and Corus Entertainment 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 Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Corus Entertainment.
Diversification Opportunities for Saia and Corus Entertainment
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saia and Corus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment 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 Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of Saia i.e., Saia and Corus Entertainment go up and down completely randomly.
Pair Corralation between Saia and Corus Entertainment
If you would invest 48,614 in Saia Inc on September 5, 2024 and sell it today you would earn a total of 5,622 from holding Saia Inc or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Saia Inc vs. Corus Entertainment
Performance |
| Timeline |
| Saia Inc |
| Corus Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saia and Corus Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Corus Entertainment
The main advantage of trading using opposite Saia and Corus Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Corus Entertainment 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 Corus Entertainment will offset losses from the drop in Corus Entertainment's long position.The idea behind Saia Inc and Corus Entertainment 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.| Corus Entertainment vs. Saia Inc | Corus Entertainment vs. Sensient Technologies | Corus Entertainment vs. Apogee Enterprises | Corus Entertainment vs. Hooker Furniture |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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