Correlation Between Saia and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Saia and Getty Copper 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 Getty Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and Getty Copper, you can compare the effects of market volatilities on Saia and Getty Copper 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 Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Getty Copper.
Diversification Opportunities for Saia and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saia and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Saia i.e., Saia and Getty Copper go up and down completely randomly.
Pair Corralation between Saia and Getty Copper
Given the investment horizon of 90 days Saia is expected to generate 4.26 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Saia Inc is 2.51 times less risky than Getty Copper. It trades about 0.05 of its potential returns per unit of risk. Getty Copper is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Getty Copper on September 13, 2024 and sell it today you would earn a total of 2.38 from holding Getty Copper or generate 95.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saia Inc vs. Getty Copper
Performance |
| Timeline |
| Saia Inc |
| Getty Copper |
Saia and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Getty Copper
The main advantage of trading using opposite Saia and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.The idea behind Saia Inc and Getty Copper 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.| Getty Copper vs. OM Holdings Limited | Getty Copper vs. Cobalt Blue Holdings | Getty Copper vs. Metals X Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |