Correlation Between Saia and MYT Netherlands
Can any of the company-specific risk be diversified away by investing in both Saia and MYT Netherlands 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 MYT Netherlands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and MYT Netherlands Parent, you can compare the effects of market volatilities on Saia and MYT Netherlands 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 MYT Netherlands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and MYT Netherlands.
Diversification Opportunities for Saia and MYT Netherlands
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saia and MYT is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and MYT Netherlands Parent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYT Netherlands Parent 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 MYT Netherlands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYT Netherlands Parent has no effect on the direction of Saia i.e., Saia and MYT Netherlands go up and down completely randomly.
Pair Corralation between Saia and MYT Netherlands
Given the investment horizon of 90 days Saia Inc is expected to under-perform the MYT Netherlands. But the stock apears to be less risky and, when comparing its historical volatility, Saia Inc is 1.81 times less risky than MYT Netherlands. The stock trades about -0.14 of its potential returns per unit of risk. The MYT Netherlands Parent is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 697.00 in MYT Netherlands Parent on October 26, 2024 and sell it today you would earn a total of 235.00 from holding MYT Netherlands Parent or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saia Inc vs. MYT Netherlands Parent
Performance |
| Timeline |
| Saia Inc |
| MYT Netherlands Parent |
Saia and MYT Netherlands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and MYT Netherlands
The main advantage of trading using opposite Saia and MYT Netherlands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, MYT Netherlands 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 MYT Netherlands will offset losses from the drop in MYT Netherlands' long position.The idea behind Saia Inc and MYT Netherlands Parent 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.| MYT Netherlands vs. Movado Group | MYT Netherlands vs. Envela Corp | MYT Netherlands vs. Tapestry | MYT Netherlands vs. Capri Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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