Correlation Between Integral and TFI International
Can any of the company-specific risk be diversified away by investing in both Integral and TFI International 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 Integral and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and TFI International, you can compare the effects of market volatilities on Integral and TFI International 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 Integral with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and TFI International.
Diversification Opportunities for Integral and TFI International
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integral and TFI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Integral 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 Integral Ad Science are associated (or correlated) with TFI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFI International has no effect on the direction of Integral i.e., Integral and TFI International go up and down completely randomly.
Pair Corralation between Integral and TFI International
Considering the 90-day investment horizon Integral Ad Science is expected to generate 1.84 times more return on investment than TFI International. However, Integral is 1.84 times more volatile than TFI International. It trades about 0.03 of its potential returns per unit of risk. TFI International is currently generating about 0.05 per unit of risk. If you would invest 928.00 in Integral Ad Science on September 2, 2024 and sell it today you would earn a total of 190.00 from holding Integral Ad Science or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. TFI International
Performance |
| Timeline |
| Integral Ad Science |
| TFI International |
Integral and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and TFI International
The main advantage of trading using opposite Integral and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, TFI International 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 TFI International will offset losses from the drop in TFI International's long position.The idea behind Integral Ad Science and TFI International 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.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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