Correlation Between TFI International and Quebecor
Can any of the company-specific risk be diversified away by investing in both TFI International and Quebecor 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 TFI International and Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Quebecor, you can compare the effects of market volatilities on TFI International and Quebecor 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 TFI International with a short position of Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Quebecor.
Diversification Opportunities for TFI International and Quebecor
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TFI and Quebecor is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and TFI International 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 TFI International are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of TFI International i.e., TFI International and Quebecor go up and down completely randomly.
Pair Corralation between TFI International and Quebecor
Assuming the 90 days trading horizon TFI International is expected to generate 1.97 times more return on investment than Quebecor. However, TFI International is 1.97 times more volatile than Quebecor. It trades about 0.17 of its potential returns per unit of risk. Quebecor is currently generating about -0.26 per unit of risk. If you would invest 18,844 in TFI International on August 30, 2024 and sell it today you would earn a total of 1,833 from holding TFI International or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Quebecor
Performance |
| Timeline |
| TFI International |
| Quebecor |
TFI International and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Quebecor
The main advantage of trading using opposite TFI International and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| TFI International vs. WSP Global | TFI International vs. Waste Connections | TFI International vs. Open Text Corp | TFI International vs. Cargojet |
| Quebecor vs. Royal Bank of | Quebecor vs. Toronto Dominion Bank Pref | Quebecor vs. Toronto Dominion Bank | Quebecor vs. Amazon CDR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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