Correlation Between TFI International and Cencora
Can any of the company-specific risk be diversified away by investing in both TFI International and Cencora 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 Cencora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Cencora, you can compare the effects of market volatilities on TFI International and Cencora 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 Cencora. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Cencora.
Diversification Opportunities for TFI International and Cencora
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFI and Cencora is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Cencora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencora 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 Cencora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencora has no effect on the direction of TFI International i.e., TFI International and Cencora go up and down completely randomly.
Pair Corralation between TFI International and Cencora
Given the investment horizon of 90 days TFI International is expected to under-perform the Cencora. In addition to that, TFI International is 3.99 times more volatile than Cencora. It trades about -0.39 of its total potential returns per unit of risk. Cencora is currently generating about 0.05 per unit of volatility. If you would invest 25,100 in Cencora on December 6, 2024 and sell it today you would earn a total of 277.00 from holding Cencora or generate 1.1% 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. Cencora
Performance |
| Timeline |
| TFI International |
| Cencora |
TFI International and Cencora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Cencora
The main advantage of trading using opposite TFI International and Cencora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Cencora 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 Cencora will offset losses from the drop in Cencora's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Cencora vs. Merit Medical Systems | Cencora vs. Spyre Therapeutics | Cencora vs. Ardelyx | Cencora vs. Westinghouse Air Brake |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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