Correlation Between TFI International and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both TFI International and Apogee Enterprises 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 Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Apogee Enterprises, you can compare the effects of market volatilities on TFI International and Apogee Enterprises 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 Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Apogee Enterprises.
Diversification Opportunities for TFI International and Apogee Enterprises
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TFI and Apogee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises 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 Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of TFI International i.e., TFI International and Apogee Enterprises go up and down completely randomly.
Pair Corralation between TFI International and Apogee Enterprises
Given the investment horizon of 90 days TFI International is expected to generate 1.17 times less return on investment than Apogee Enterprises. In addition to that, TFI International is 1.3 times more volatile than Apogee Enterprises. It trades about 0.16 of its total potential returns per unit of risk. Apogee Enterprises is currently generating about 0.24 per unit of volatility. If you would invest 7,669 in Apogee Enterprises on August 29, 2024 and sell it today you would earn a total of 795.50 from holding Apogee Enterprises or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Apogee Enterprises
Performance |
| Timeline |
| TFI International |
| Apogee Enterprises |
TFI International and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Apogee Enterprises
The main advantage of trading using opposite TFI International and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises | TFI International vs. Knight Transportation |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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