Correlation Between Western Acquisition and Saia
Can any of the company-specific risk be diversified away by investing in both Western Acquisition 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 Western Acquisition and Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Acquisition Ventures and Saia Inc, you can compare the effects of market volatilities on Western Acquisition 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 Western Acquisition with a short position of Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and Saia.
Diversification Opportunities for Western Acquisition and Saia
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Saia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc and Western Acquisition 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 Western Acquisition Ventures 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 Western Acquisition i.e., Western Acquisition and Saia go up and down completely randomly.
Pair Corralation between Western Acquisition and Saia
Given the investment horizon of 90 days Western Acquisition Ventures is expected to under-perform the Saia. But the stock apears to be less risky and, when comparing its historical volatility, Western Acquisition Ventures is 1.75 times less risky than Saia. The stock trades about -0.17 of its potential returns per unit of risk. The Saia Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 47,938 in Saia Inc on August 28, 2024 and sell it today you would earn a total of 7,789 from holding Saia Inc or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Acquisition Ventures vs. Saia Inc
Performance |
| Timeline |
| Western Acquisition |
| Saia Inc |
Western Acquisition and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and Saia
The main advantage of trading using opposite Western Acquisition and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition 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.| Western Acquisition vs. PowerUp Acquisition Corp | Western Acquisition vs. Aurora Innovation | Western Acquisition vs. HUMANA INC | Western Acquisition vs. Aquagold International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |