Correlation Between Saia and WT Offshore

Can any of the company-specific risk be diversified away by investing in both Saia and WT Offshore 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 Saia and WT Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saia Inc and WT Offshore, you can compare the effects of market volatilities on Saia and WT Offshore 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 WT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saia and WT Offshore.

Diversification Opportunities for Saia and WT Offshore

-0.05

Correlation Coefficient

Saia  WT Offshore

Good diversification

The 3 months correlation between Saia and WTI is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Saia Inc and WT Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Offshore 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 WT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Offshore has no effect on the direction of Saia i.e., Saia and WT Offshore go up and down completely randomly.

Pair Corralation between Saia and WT Offshore

Given the investment horizon of 90 days Saia is expected to generate 2.32 times less return on investment than WT Offshore. But when comparing it to its historical volatility, Saia Inc is 1.56 times less risky than WT Offshore. It trades about 0.09 of its potential returns per unit of risk. WT Offshore is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  124.00  in WT Offshore on May 7, 2025 and sell it today you would earn a total of  49.00  from holding WT Offshore or generate 39.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Saia Inc  vs.  WT Offshore

Saia Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Saia Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting forward indicators, Saia sustained solid returns over the last few months and may actually be approaching a breakup point.

WT Offshore

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in WT Offshore are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, WT Offshore demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saia and WT Offshore

The main advantage of trading using opposite Saia and WT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saia position performs unexpectedly, WT Offshore 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 WT Offshore will offset losses from the drop in WT Offshore's long position.

The idea behind Saia Inc and WT Offshore 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.