Correlation Between Sonic Interfreight and Triple I
Can any of the company-specific risk be diversified away by investing in both Sonic Interfreight and Triple I 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 Sonic Interfreight and Triple I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Interfreight Public and Triple i Logistics, you can compare the effects of market volatilities on Sonic Interfreight and Triple I 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 Sonic Interfreight with a short position of Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Interfreight and Triple I.
Diversification Opportunities for Sonic Interfreight and Triple I
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sonic and Triple is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Interfreight Public and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics and Sonic Interfreight 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 Sonic Interfreight Public are associated (or correlated) with Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Sonic Interfreight i.e., Sonic Interfreight and Triple I go up and down completely randomly.
Pair Corralation between Sonic Interfreight and Triple I
Assuming the 90 days trading horizon Sonic Interfreight is expected to generate 476.97 times less return on investment than Triple I. But when comparing it to its historical volatility, Sonic Interfreight Public is 34.88 times less risky than Triple I. It trades about 0.0 of its potential returns per unit of risk. Triple i Logistics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Triple i Logistics on September 2, 2024 and sell it today you would lose (398.00) from holding Triple i Logistics or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonic Interfreight Public vs. Triple i Logistics
Performance |
| Timeline |
| Sonic Interfreight Public |
| Triple i Logistics |
Sonic Interfreight and Triple I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Interfreight and Triple I
The main advantage of trading using opposite Sonic Interfreight and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Interfreight position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.| Sonic Interfreight vs. Kerry Express Public | Sonic Interfreight vs. Triple i Logistics | Sonic Interfreight vs. WICE Logistics PCL |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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