Correlation Between Saia and ORACLE
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By analyzing existing cross correlation between Saia Inc and ORACLE P 295, you can compare the effects of market volatilities on Saia and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and ORACLE.
Diversification Opportunities for Saia and ORACLE
Good diversification
The 3 months correlation between Saia and ORACLE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and ORACLE P 295 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 295 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 295 has no effect on the direction of Saia i.e., Saia and ORACLE go up and down completely randomly.
Pair Corralation between Saia and ORACLE
Given the investment horizon of 90 days Saia Inc is expected to generate 7.58 times more return on investment than ORACLE. However, Saia is 7.58 times more volatile than ORACLE P 295. It trades about 0.04 of its potential returns per unit of risk. ORACLE P 295 is currently generating about -0.01 per unit of risk. If you would invest 41,758 in Saia Inc on September 12, 2024 and sell it today you would earn a total of 10,539 from holding Saia Inc or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.74% |
| Values | Daily Returns |
Saia Inc vs. ORACLE P 295
Performance |
| Timeline |
| Saia Inc |
| ORACLE P 295 |
Saia and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and ORACLE
The main advantage of trading using opposite Saia and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| Saia vs. ArcBest Corp | Saia vs. Marten Transport | Saia vs. Werner Enterprises | Saia vs. Knight Transportation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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