Correlation Between Red Trail and TFI International
Can any of the company-specific risk be diversified away by investing in both Red Trail 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 Red Trail and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Trail Energy and TFI International, you can compare the effects of market volatilities on Red Trail 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 Red Trail with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Trail and TFI International.
Diversification Opportunities for Red Trail and TFI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Red and TFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Red Trail Energy and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Red Trail 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 Red Trail Energy 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 Red Trail i.e., Red Trail and TFI International go up and down completely randomly.
Pair Corralation between Red Trail and TFI International
If you would invest 14,707 in TFI International on September 13, 2024 and sell it today you would earn a total of 642.00 from holding TFI International or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Red Trail Energy vs. TFI International
Performance |
| Timeline |
| Red Trail Energy |
| TFI International |
Red Trail and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Trail and TFI International
The main advantage of trading using opposite Red Trail and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Trail 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.| Red Trail vs. RCS MediaGroup SpA | Red Trail vs. Diageo PLC ADR | Red Trail vs. Fevertree Drinks Plc | Red Trail vs. Boston Beer |
| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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