Correlation Between Saia and Occidental
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By analyzing existing cross correlation between Saia Inc and Occidental Petroleum 66, you can compare the effects of market volatilities on Saia and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and Occidental.
Diversification Opportunities for Saia and Occidental
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saia and Occidental is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and Occidental Petroleum 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Saia i.e., Saia and Occidental go up and down completely randomly.
Pair Corralation between Saia and Occidental
Given the investment horizon of 90 days Saia Inc is expected to generate 5.57 times more return on investment than Occidental. However, Saia is 5.57 times more volatile than Occidental Petroleum 66. It trades about 0.17 of its potential returns per unit of risk. Occidental Petroleum 66 is currently generating about 0.39 per unit of risk. If you would invest 48,614 in Saia Inc on September 5, 2024 and sell it today you would earn a total of 6,183 from holding Saia Inc or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Saia Inc vs. Occidental Petroleum 66
Performance |
| Timeline |
| Saia Inc |
| Occidental Petroleum |
Saia and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and Occidental
The main advantage of trading using opposite Saia and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.The idea behind Saia Inc and Occidental Petroleum 66 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.| Occidental vs. The Travelers Companies | Occidental vs. GE Aerospace | Occidental vs. Walmart | Occidental vs. Pfizer Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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