Correlation Between Saia and XYLEM
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By analyzing existing cross correlation between Saia Inc and XYLEM INC 325, you can compare the effects of market volatilities on Saia and XYLEM 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 XYLEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and XYLEM.
Diversification Opportunities for Saia and XYLEM
Very good diversification
The 3 months correlation between Saia and XYLEM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and XYLEM INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XYLEM INC 325 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 XYLEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XYLEM INC 325 has no effect on the direction of Saia i.e., Saia and XYLEM go up and down completely randomly.
Pair Corralation between Saia and XYLEM
Given the investment horizon of 90 days Saia Inc is expected to generate 32.52 times more return on investment than XYLEM. However, Saia is 32.52 times more volatile than XYLEM INC 325. It trades about 0.2 of its potential returns per unit of risk. XYLEM INC 325 is currently generating about 0.14 per unit of risk. If you would invest 49,133 in Saia Inc on August 31, 2024 and sell it today you would earn a total of 7,775 from holding Saia Inc or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Saia Inc vs. XYLEM INC 325
Performance |
| Timeline |
| Saia Inc |
| XYLEM INC 325 |
Saia and XYLEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saia and XYLEM
The main advantage of trading using opposite Saia and XYLEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, XYLEM 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 XYLEM will offset losses from the drop in XYLEM's long position.The idea behind Saia Inc and XYLEM INC 325 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.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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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