<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you own shares in Saia, Inc. (NASDAQ: SAIA), it is useful to think about how it contributes to the volatility of your portfolio as a whole. In finance, beta is a measure of volatility. Modern financial theory views volatility as a measure of risk. There are two main types of price volatility. First, we have company-specific volatility, which is the price movement of a particular security. Holding at least 8 stocks can reduce this type of risk in a portfolio. The second type is caused by the natural volatility of the markets as a whole. For example, certain macroeconomic events will affect (virtually) all market shares. "Data-reactid =" 28 "> If you own shares of Saia, Inc. (NASDAQ: SAIA), it is useful to think about how they contribute to the volatility of your portfolio, globally (in finance, the beta is a measure of volatility) The modern theory of finance views volatility as a measure of risk, and there are two main types of price volatility: first, company-specific volatility, price fluctuation, and a given security reduces this type of risk in a portfolio, which is partly due to the natural volatility of the markets as a whole, for example, certain macroeconomic events will affect (virtually) all securities in the market.
Some stocks see their prices evolve in concert with the market. Others tend toward stronger, softer or unrelated price movements. Beta can be a useful tool for understanding how an equity is influenced by market risk (volatility). However, Warren Buffett said that "volatility is far from being risky" in his 2014 letter to investors. Thus, although useful, the beta is not the only measure to take into account. To use the beta version as an investor, you must first understand that the market is endowed with a beta version. A stock with a beta greater than one is more sensitive to market movements than stocks with a beta below one.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " See our latest analysis for Saia "data-reactid =" 30 "> See our latest analysis for Saia
What does the SAIA beta value mean for investors?
With a beta of 1.04 (which is pretty close to 1), Saia's stock price has always been about as voltile as the market at large. Although history does not always repeat itself, this may indicate that the stock price will continue to be exposed to market risk, even if not excessively. Many would argue that beta is useful for sizing positions, but that fundamental measures such as income and profits are more important in general. You can see the business figure and the profit of Saia in the picture below.
NASDAQGS: SAIA Income Statement Export 11 February 19
Could the size of SAIA be more volatile?
Saia is a small stock market capitalization with a market capitalization of 1.7 billion US dollars. Most companies of this size are actively traded. Less capital is needed to move the shares of small companies, and they are more affected by company-specific events. So it's a little surprising that beta is so close to the global market.
What does this mean for you?
Saia has a beta value quite close to that of the overall market. It does not tell us much about it. It is therefore probably worth asking if the company is growing, if you are looking for stocks that will rise more than the market in general. To fully understand whether SAIA is a good investment for you, we also need to consider important business-specific fundamentals, such as Saia's financial health and performance. I urge you to continue your research by examining the following:
- Future prospects: What are well-informed industry analysts predicting the future growth of SAIA? Check out our free research report on analyst consensus on SAIA's outlook.
- antecedents: Has SAIA always been successful regardless of the ups and downs of the market? Go into more detail in past performance reviews and review the free visual representations of SAIA histories for clarity.
- Other interesting actions: It should be checked how SAIA compares to other companies in terms of evaluation. You can start with this free list of potential options.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research analysis based solely on fundamental data. Note that our analysis does not take into account the latest price sensitive business announcements.
The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at the address email@example.com.
"data-reactid =" 53 "> To help readers understand the short-term volatility of the financial market, we aim to provide you with a long-term research analysis based solely on fundamental data. account of the latest price sensitive business announcements.
The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at firstname.lastname@example.org.