Correlation Between Saia and OmniAb
Can any of the company-specific risk be diversified away by investing in both Saia and OmniAb 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 OmniAb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saia Inc and OmniAb Inc, you can compare the effects of market volatilities on Saia and OmniAb 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 OmniAb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and OmniAb.
Diversification Opportunities for Saia and OmniAb
Very good diversification
The 3 months correlation between Saia and OmniAb is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and OmniAb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmniAb Inc 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 OmniAb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmniAb Inc has no effect on the direction of Saia i.e., Saia and OmniAb go up and down completely randomly.
Pair Corralation between Saia and OmniAb
Given the investment horizon of 90 days Saia is expected to generate 43.88 times less return on investment than OmniAb. But when comparing it to its historical volatility, Saia Inc is 35.25 times less risky than OmniAb. It trades about 0.08 of its potential returns per unit of risk. OmniAb Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 55.00 in OmniAb Inc on September 12, 2024 and sell it today you would lose (22.00) from holding OmniAb Inc or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.56% |
| Values | Daily Returns |
Saia Inc vs. OmniAb Inc
Performance |
| Timeline |
| Saia Inc |
| OmniAb Inc |
Saia and OmniAb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and OmniAb
The main advantage of trading using opposite Saia and OmniAb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, OmniAb 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 OmniAb will offset losses from the drop in OmniAb's long position.| Saia vs. ArcBest Corp | Saia vs. Marten Transport | Saia vs. Werner Enterprises | Saia vs. Knight Transportation |
| OmniAb vs. Dominos Pizza | OmniAb vs. Ark Restaurants Corp | OmniAb vs. Yum Brands | OmniAb vs. The Cheesecake Factory |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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