Correlation Between TFI International and CNOOC
Can any of the company-specific risk be diversified away by investing in both TFI International and CNOOC 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 CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and CNOOC Limited, you can compare the effects of market volatilities on TFI International and CNOOC 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 CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and CNOOC.
Diversification Opportunities for TFI International and CNOOC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TFI and CNOOC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited 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 CNOOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNOOC Limited has no effect on the direction of TFI International i.e., TFI International and CNOOC go up and down completely randomly.
Pair Corralation between TFI International and CNOOC
If you would invest (100.00) in CNOOC Limited on November 27, 2024 and sell it today you would earn a total of 100.00 from holding CNOOC Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TFI International vs. CNOOC Limited
Performance |
| Timeline |
| TFI International |
| CNOOC Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
TFI International and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and CNOOC
The main advantage of trading using opposite TFI International and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, CNOOC 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 CNOOC will offset losses from the drop in CNOOC's long position.| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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