Correlation Between Saia and PENSKE
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By analyzing existing cross correlation between Saia Inc and PENSKE 57 01 FEB 28, you can compare the effects of market volatilities on Saia and PENSKE 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 PENSKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and PENSKE.
Diversification Opportunities for Saia and PENSKE
Excellent diversification
The 3 months correlation between Saia and PENSKE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and PENSKE 57 01 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENSKE 57 01 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 PENSKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENSKE 57 01 has no effect on the direction of Saia i.e., Saia and PENSKE go up and down completely randomly.
Pair Corralation between Saia and PENSKE
Given the investment horizon of 90 days Saia Inc is expected to under-perform the PENSKE. In addition to that, Saia is 4.53 times more volatile than PENSKE 57 01 FEB 28. It trades about -0.05 of its total potential returns per unit of risk. PENSKE 57 01 FEB 28 is currently generating about -0.17 per unit of volatility. If you would invest 10,189 in PENSKE 57 01 FEB 28 on September 15, 2024 and sell it today you would lose (110.00) from holding PENSKE 57 01 FEB 28 or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Saia Inc vs. PENSKE 57 01 FEB 28
Performance |
| Timeline |
| Saia Inc |
| PENSKE 57 01 |
Saia and PENSKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and PENSKE
The main advantage of trading using opposite Saia and PENSKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, PENSKE 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 PENSKE will offset losses from the drop in PENSKE's long position.| Saia vs. Covenant Logistics Group, | Saia vs. Universal Logistics Holdings | 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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