Correlation Between Life Insurance and TFI International
Can any of the company-specific risk be diversified away by investing in both Life Insurance 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 Life Insurance and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Insurance and TFI International, you can compare the effects of market volatilities on Life Insurance 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 Life Insurance with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and TFI International.
Diversification Opportunities for Life Insurance and TFI International
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Life and TFI is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Life Insurance 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 Life Insurance 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 Life Insurance i.e., Life Insurance and TFI International go up and down completely randomly.
Pair Corralation between Life Insurance and TFI International
Assuming the 90 days horizon Life Insurance is expected to under-perform the TFI International. In addition to that, Life Insurance is 1.16 times more volatile than TFI International. It trades about -0.05 of its total potential returns per unit of risk. TFI International is currently generating about 0.0 per unit of volatility. If you would invest 13,344 in TFI International on November 9, 2024 and sell it today you would lose (310.00) from holding TFI International or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.03% |
| Values | Daily Returns |
Life Insurance vs. TFI International
Performance |
| Timeline |
| Life Insurance |
| TFI International |
Life Insurance and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and TFI International
The main advantage of trading using opposite Life Insurance and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance 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.| Life Insurance vs. Alphabet Inc Class C | Life Insurance vs. Qudian Inc | Life Insurance vs. Kratos Defense Security | Life Insurance vs. Fbec Worldwide |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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