Correlation Between TFI International and Concord New
Can any of the company-specific risk be diversified away by investing in both TFI International and Concord New 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 Concord New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Concord New Energy, you can compare the effects of market volatilities on TFI International and Concord New 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 Concord New. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Concord New.
Diversification Opportunities for TFI International and Concord New
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TFI and Concord is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Concord New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord New Energy 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 Concord New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord New Energy has no effect on the direction of TFI International i.e., TFI International and Concord New go up and down completely randomly.
Pair Corralation between TFI International and Concord New
If you would invest 13,615 in TFI International on August 27, 2024 and sell it today you would earn a total of 1,368 from holding TFI International or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Concord New Energy
Performance |
| Timeline |
| TFI International |
| Concord New Energy |
TFI International and Concord New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Concord New
The main advantage of trading using opposite TFI International and Concord New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Concord New 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 Concord New will offset losses from the drop in Concord New's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Knight Transportation | TFI International vs. Universal Logistics Holdings |
| Concord New vs. TFI International | Concord New vs. Eastman Kodak Co | Concord New vs. Fossil Group | Concord New vs. Stepan 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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