Correlation Between Saia and Intchains Group
Can any of the company-specific risk be diversified away by investing in both Saia and Intchains Group 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 Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and Intchains Group Limited, you can compare the effects of market volatilities on Saia and Intchains Group 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 Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Intchains Group.
Diversification Opportunities for Saia and Intchains Group
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saia and Intchains is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group 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 Intchains Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intchains Group has no effect on the direction of Saia i.e., Saia and Intchains Group go up and down completely randomly.
Pair Corralation between Saia and Intchains Group
Given the investment horizon of 90 days Saia Inc is expected to generate 0.45 times more return on investment than Intchains Group. However, Saia Inc is 2.24 times less risky than Intchains Group. It trades about 0.21 of its potential returns per unit of risk. Intchains Group Limited is currently generating about -0.08 per unit of risk. If you would invest 38,058 in Saia Inc on September 2, 2024 and sell it today you would earn a total of 18,850 from holding Saia Inc or generate 49.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saia Inc vs. Intchains Group Limited
Performance |
| Timeline |
| Saia Inc |
| Intchains Group |
Saia and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Intchains Group
The main advantage of trading using opposite Saia and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Intchains Group 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 Intchains Group will offset losses from the drop in Intchains Group's long position.The idea behind Saia Inc and Intchains Group Limited 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.| Intchains Group vs. The Gap, | Intchains Group vs. BBB Foods | Intchains Group vs. SunLink Health Systems | Intchains Group vs. Transocean |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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