Correlation Between SEI Investments and Saia
Can any of the company-specific risk be diversified away by investing in both SEI Investments and Saia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SEI Investments and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and Saia Inc, you can compare the effects of market volatilities on SEI Investments and Saia 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 SEI Investments with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and Saia.
Diversification Opportunities for SEI Investments and Saia
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SEI and Saia is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and SEI Investments 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 SEI Investments are associated (or correlated) with Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of SEI Investments i.e., SEI Investments and Saia go up and down completely randomly.
Pair Corralation between SEI Investments and Saia
Given the investment horizon of 90 days SEI Investments is expected to generate 1.05 times less return on investment than Saia. But when comparing it to its historical volatility, SEI Investments is 2.89 times less risky than Saia. It trades about 0.12 of its potential returns per unit of risk. Saia Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 42,804 in Saia Inc on September 14, 2024 and sell it today you would earn a total of 9,718 from holding Saia Inc or generate 22.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. Saia Inc
Performance |
| Timeline |
| SEI Investments |
| Saia Inc |
SEI Investments and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and Saia
The main advantage of trading using opposite SEI Investments and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.| SEI Investments vs. Visa Class A | SEI Investments vs. Diamond Hill Investment | SEI Investments vs. Distoken Acquisition | SEI Investments vs. AllianceBernstein Holding LP |
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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