Correlation Between TFI International and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both TFI International and Ameriprise Financial 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 Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Ameriprise Financial, you can compare the effects of market volatilities on TFI International and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Ameriprise Financial.
Diversification Opportunities for TFI International and Ameriprise Financial
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and Ameriprise is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of TFI International i.e., TFI International and Ameriprise Financial go up and down completely randomly.
Pair Corralation between TFI International and Ameriprise Financial
Given the investment horizon of 90 days TFI International is expected to generate 9.31 times less return on investment than Ameriprise Financial. In addition to that, TFI International is 1.14 times more volatile than Ameriprise Financial. It trades about 0.02 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.26 per unit of volatility. If you would invest 46,203 in Ameriprise Financial on August 25, 2024 and sell it today you would earn a total of 11,004 from holding Ameriprise Financial or generate 23.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Ameriprise Financial
Performance |
| Timeline |
| TFI International |
| Ameriprise Financial |
TFI International and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Ameriprise Financial
The main advantage of trading using opposite TFI International and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Werner Enterprises | TFI International vs. Knight Transportation |
| Ameriprise Financial vs. PowerUp Acquisition Corp | Ameriprise Financial vs. Aurora Innovation | Ameriprise Financial vs. HUMANA INC | Ameriprise Financial vs. Aquagold International |
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 Stocks Directory module to find actively traded stocks across global markets.
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