Correlation Between Saia and 502413BE6
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By analyzing existing cross correlation between Saia Inc and L3 TECHNOLOGIES INC, you can compare the effects of market volatilities on Saia and 502413BE6 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 502413BE6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and 502413BE6.
Diversification Opportunities for Saia and 502413BE6
Very weak diversification
The 3 months correlation between Saia and 502413BE6 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and L3 TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L3 TECHNOLOGIES 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 502413BE6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L3 TECHNOLOGIES INC has no effect on the direction of Saia i.e., Saia and 502413BE6 go up and down completely randomly.
Pair Corralation between Saia and 502413BE6
Given the investment horizon of 90 days Saia Inc is expected to generate 1.7 times more return on investment than 502413BE6. However, Saia is 1.7 times more volatile than L3 TECHNOLOGIES INC. It trades about 0.06 of its potential returns per unit of risk. L3 TECHNOLOGIES INC is currently generating about 0.06 per unit of risk. If you would invest 39,745 in Saia Inc on September 4, 2024 and sell it today you would earn a total of 15,052 from holding Saia Inc or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 23.08% |
| Values | Daily Returns |
Saia Inc vs. L3 TECHNOLOGIES INC
Performance |
| Timeline |
| Saia Inc |
| L3 TECHNOLOGIES INC |
Saia and 502413BE6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and 502413BE6
The main advantage of trading using opposite Saia and 502413BE6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, 502413BE6 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 502413BE6 will offset losses from the drop in 502413BE6's long position.The idea behind Saia Inc and L3 TECHNOLOGIES INC 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.| 502413BE6 vs. KVH Industries | 502413BE6 vs. U Haul Holding | 502413BE6 vs. FTAI Aviation Ltd | 502413BE6 vs. Triton International 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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